Medicare Advantage typically has lower monthly premiums than Medicare Supplement. However, Medicare Advantage has higher out-of-pocket costs when you use medical services. Medicare Supplement has higher monthly premiums but predictable out-of-pocket costs. The total cost depends on how much medical care you use.
Key Points
- Medicare Advantage: lower monthly premiums, higher out-of-pocket when you use care
- Medicare Supplement: higher monthly premiums, predictable out-of-pocket costs
- Total cost depends on how much medical care you use
- Healthy people: Medicare Advantage may be cheaper overall
- People with significant health needs: Medicare Supplement may be cheaper overall