Medicare Advantage Plans (MA-PPO/HMO) are sold by insurance companies while Medicare Supplement plans (Medigap) are sold by insurance companies and private insurance companies. The plans are very similar, and the advantages are essentially the same. However, some plans are better than others, so it is important to do a little homework before you make a final decision. Here are some of the things you should look for when comparing Medigap and Medicare Advantage plans.

Medicare Advantage plans are health plan options for Medicare beneficiaries, available in four categories: HMO, HMO-POS, PPO, and PFFS. The plans are standardized and emphasize PPO and PFFS. Private health insurance companies offer these plans, but the government sets the rules. Medicare Advantage plans must cover Medicare’s Part A and Part B benefits, as well as provide coverage for Medicare Part D prescription drugs. They must offer at least the same coverage as the standard fee-for-service program for Part D. Premiums, copayments, and deductibles may be charged for Medicare Advantage plans.