You're are correct. Every consumer should understand the total cost of their health insurance. We pay premiums when we are healthy and out-of-pocket costs when we are sick. The premiums we pay are designed to ensure we get a negotiated rate for services - $10 copay for doctors office visit. The great thing about a supplement is my premium may cover nearly everything.

Medicare Advantage plans offer lower premiums when you are healthy and out-of-pocket costs when you are sick or need prescriptions. It is important to note that most have annual caps on medical costs that range from $3000 to $10,000. So after paying your monthly premium, if you get really sick your medical copays and deductibles are capped. You know that your premium ensures you won't pay more than a set amount for out-of-pocket costs.

Medicare Supplement plans offer you a choice of plans with or without out-of-pocket costs. That means your premium covers you when you are healthy and when you are sick. Just remember, you are not covered for prescriptions.

Whenever you buy insurance from a "professional" ask them why they are recommending one product over another and what their commission is on that product. Chances are good their recommendation is based on their commission.

Personally, I plan to buy a supplement when I retire. I like knowing that there are predictable costs and they won't change when I get sick. If I am fortunate to be healthy, I might choose a Medicare advantage plan if it means I can get predictable costs for medical and prescription drug coverage and save $100 a month.

One thing I would like to comment about what this author has forgotten to mention, is the out of pocket costs for the Medicare Advantage HMO and PPO and PFFS plans. Those copays, deductibles, and the out of pocket limits are astronomical compared to original Medicare and a Medigap(Medicare Supplement). Hopefully he isn't in the Medicare Supplement field because otherwise his clients are not going to be happy with the amount of out of pocket expenses they will have to pay.
If you need to get coverage because your already on Medicare or you are new to Medicare please give a professional a call and make sure you have the BEST coverage that's available!!!

The pendulum that swings back and forth from Original Medicare and Medicare Advantage plans is beginning to swing back toward Original Medicare and Medicare supplements, and away from Medicare Advantage plans (with some exceptions).
In recent years, Private Fee For Service plans have enjoyed tremendous momentum. However, during the past three years, marketing restrictions, network requirements, and changes in funding have successfully halted the growth in these plans. Over the next year and two, these PFFS plans will be exiting the market in big numbers and terminating coverage for hundreds of thousands of seniors.

This looks similar to the exodus of Medicare HMO plans in the late 90's. However, there is a big difference this time. Medicare Advantage (renamed from Medicare + Choice) has a broader assortment of plan designs, and a couple of these plan types will be gaining some momentum as PFFS plans exit. Look for the expansion of HMO and PPO plans, some with very strong benefits, to capture a good share of the PFFS disenrollment. This has traditionally been a price sensitive market and these plans will be hard to beat on that front.

With that being said, there is also a growing distrust among seniors, and agents as well, for Medicare Advantage plans in general. There are good reasons for this growing sentiment. Besides being confusing to seniors, there are other issues such as difficulty accesing providers, limited enrollment & disenrollment opportunities, and the uncertainty that comes from losing coverage. These things are bigger issues than price and are what is driving the trend back towards Medicare Supplement.

Saavy agents will look towards newer "cost share" supplements that can mimmick the premium/co-pay structure of some of the best HMO & PPO plans, but deliver the important benefits of guaranteed renewability, provider access and no lock in. In recent years, plans K,L,M, and now N have been developed. Take a closer look at them.

Medigap Insurance plans are a great alternative to Medicare Advantage Plans - no referrals, no networks, no middleman. Medigap and Medicare Advantage plans have their strengths and weakness. When comparing it is important to understand the total cost of coverage - premiums, copays, deductibles and coinsurances. Your premium is first dollar coverage - what you pay before you get sick. The others are "cost sharing" - what you pay when you are sick. Choose a Medigap plan that pays your deductibles and coinsurance. Medigap plans do not offer Drug coverage. Generally there is more cost sharing as you approach plan J (Higher Premiums) and less if start with A (Lower Premiums). You will pay less and get more with a Medicare Advantage plan (including Drug coverage) often with a trade-off being restricted to a network. You also get to appeal decisions with your health plan. If you choose a Medigap plan you'll have to appeal decisions directly to Medicare.

Nice Article Dana Cutter,
Medigap Insurance Plans help the beneficiary to pay for those costs are not been included under the policy coverage of the original Medicare plans.There are 12 standard Medigap plans, labeled A through L, that offer different levels of health coverage. Even though different insurance companies sell these policies, the benefits of each standard Medigap plan are always the same. Medicare Supplement Plan J is one of the Federally-standardized Medicare Supplement plans. Much has been written and discussed about the upcoming June 1, 2010 changes to the standard Medicare Supplement plans. One of the major changes with the modernization of the plans is the elimination of several plans, including Medigap Plan J. It is important to note, however, that existing Plan J policyholders will not lose their current Plan J coverage with this modernization of the plans.