Medicare Supplement plans like Medicare Advantage plans are a form of health insurance designed to cover the areas of noncoverage under Medicare. Examples of noncoverage areas targeted by Medigap policies are the deductibles under the Medicare insurance policy, coinsurance amounts specified in the Medicare insurance policy, medical charges that exceed Medicare's approved amounts, and various medical services and supplies not paid for by Medicare.

Unlike Medicare Advantage plans, Medigap plans allow you to see any doctor who accepts Medicare in the country with no referral or network restrictions. Medicare Advantage plans generally operate in a network (HMO or PPO) and require copays, deductibles and coinsurances known as out-of-pocket costs. The monthly premiums for these plans will be considerably cheaper than Medigap plans but when you're sick they generally cost the same as Medigap plans A and C. The great thing about Medigap Plan C, all your costs are front loaded into the premium with no out-of-pocket costs. You will find that Medigap medical plans costs are more predictable than Medicare Advantage.

Please review the attached chart for a line item by line item comparison. If you choose medical coverage from a Medigap plan you may need to purchase a separate policy for Prescription Drug coverage known as a Medicare Part D Plan. If you can afford it the combination of both plans may be around $230 a month. The most expensive Medicare Advantage plans include drug coverage and may cost less than $180 per month.