Common Medicare plan options.
This page summarizes broad differences. Actual benefits and costs depend on plan, county, carrier, and eligibility.
Medicare Advantage
Medicare Advantage plans are offered by private insurance companies approved by Medicare. Many plans use provider networks and may include additional benefits, depending on the plan and area. Review network rules, prior authorization, drug coverage, and maximum out-of-pocket costs carefully.
Medicare Supplement insurance
Medicare Supplement insurance, often called Medigap, is private insurance designed to help pay certain out-of-pocket costs under Original Medicare. Medigap policies generally do not include prescription drug coverage, so many people pair them with a Part D plan.
Prescription drug coverage
Part D plans can be stand-alone drug plans or included in some Medicare Advantage plans. Drug formularies can change, so it is important to review your prescriptions, pharmacy preferences, and estimated annual drug costs.
Side-by-side questions
| Question | Why it matters |
|---|---|
| Do I want a provider network? | Some plan types may require you to use network doctors or get referrals. |
| Which prescriptions do I take? | Formularies, tiers, prior authorization, and preferred pharmacies can affect costs. |
| How much risk can I handle? | Premiums and out-of-pocket costs vary by plan type. |
| Do I travel often? | Coverage rules outside your service area can differ. |