Medicare Advantage vs Medicare Supplement: What’s the difference?

By 2025, about 54% of beneficiaries of Medicare will have signed up for Medicare Advantage plans. On the other hand, 21% pick a Medicare Supplement plan instead. But what is the real difference between them? Which one do you think is best for you? At LMS Insurance Group, we help people understand Medicare in a way that makes them feel safe. We make it easy to understand in this piece.

First, What Do You Need to Have Medicare Advantage vs Medicare Supplement?

You must have Original Medicare, which covers Parts A and B before you can sign up for either a Medicare Advantage or a Medicare Supplement plan.

• Suppose you or your spouse have worked and contributed to Social Security for a minimum of ten years. In that case, Medicare Part A is typically free.
• In 2025, the monthly premium for Medicare Part B is approximately $185.

That’s the starting point. Without both Part A and B, you can’t sign up for either type of coverage.

For Medicare Advantage, You also have to live in a county that offers Advantage plans. One county might have a lot of choices, while another might not have any at all.

For Medicare Supplement plans (also called Medigap), you typically must be 65 or older. Some people on disability get Medicare before age 65, but insurers usually don’t offer Medigap plans until you turn 65.

What’s in a Name?

Let’s clear up some of the terms you might hear:

• Medicare Supplement = Medigap. You can use these terms in place of each other. You may also hear of plans called Plan G, Plan N, or Plan F. These are all different kinds of Medigap coverage.
• Medicare Advantage = Part C. Some people also call these managed care or Medicare replacement plans. (We dislike the word “replacement” because it means the same thing but in a different way: it is still Medicare.)

Monthly Costs

You will still have to pay the $185 Medicare Part B payment with either plan for sure.

You will have to fulfil an extra monthly fee for a Medicare Supplement. The amount will depend on your age and where you live, but it is normally between $100 and $200.

If you choose Medicare Advantage, most plans have no extra monthly premium, although a few might charge a small one.

What About Deductibles and Copays?

In 2025, your annual payment for a Medicare Supplement will be only $257. Some services, like those in Plans G and F, are fully covered after that.

• Plan N is a little different: You might have to pay $20 to see the doctor and $50 to go to the ER visit.

With a Medicare Advantage plan, there’s usually no deductible, but you’ll pay co-pays for most services.

• For example, hospital stays, surgeries, and specialist visits typically have a copay.
• Some basic services, like primary care visits or lab work, may have zero co-pays, depending on the plan.

Dental, Vision, and Prescriptions

Medicare Supplement plans don’t include dental, vision, or drug coverage. For oral, eye, and Part D (prescription drugs), you will need to buy different plans.

On the other hand, most Medicare Advantage plans include:

• A dental allowance
• Vision benefits like eye exams or glasses
• Built-in drug coverage (no separate Part D plan needed)

Extra Perks and Benefits

Medicare Supplements stick to medical coverage only. You won’t get things like gym memberships, over-the-counter (OTC) allowances, or food cards.

Medicare Advantage plans often include:

• Gym memberships (like SilverSneakers)
• OTC allowances for health products
• Transportation help
• Food benefits
• And even rewards for getting your yearly checkups

The exact benefits depend on your plan, but many offer helpful extras that add real value.

Networks and Access to Doctors

Here’s a big difference:

Medicare Supplement plans have no network restrictions. If your doctor accepts Medicare, they accept your Medigap plan.

Medicare Advantage plans have networks. You may have to stay in-network to get the lowest cost.

• HMO plans require you to stay in-network.
• PPO plans let you go out-of-network, but it’ll cost more.

Note: Doctors can leave Advantage networks mid-year, so you may need to check that your doctor is still covered each year.

Prior Authorizations

Medicare Supplements rarely require prior authorizations. You can usually go ahead with your doctor’s recommended tests or surgeries. Medicare Advantage plans often do require pre-approvals for certain procedures or treatments.

• In fact, about 7% of prior authorizations get denied, which means you might have to file an appeal or pay out-of-pocket.

Pros and Cons at a Glance

Medicare Supplement Pros:

• Predictable monthly costs
• No networks to worry about
• Rarely need prior authorization
• Plans don’t change every year

Medicare Supplement Cons:

• Higher monthly premiums
• Prices can go up as you age
• Must buy drug, dental, and vision plans separately
• No extra perks (like OTC cards or gym memberships)

Medicare Advantage Pros:

• Low or $0 monthly premium
• Includes drug coverage
• Offers extras like dental, vision, and wellness benefits
• Rewards for preventive care

Medicare Advantage Cons:

• You’ll pay co-pays all year for services
• Must stay in a network for the best pricing
• Requires prior authorization for many services
• Plans can change every year

So, Which One Is Better?

No one answer works for everyone. There is good coverage in both Medicare Advantage and Medicare Supplement plans, and most people are happy with their pick.

In fact, a 2024 Forbes survey showed:

• 93% of people with Medicare Supplement plans were satisfied.
• 96% of people with Medicare Advantage plans felt their plan met expectations.

It really comes down to what you value more:

• Flexibility and predictability? Go with a Medicare Supplement.
• Lower costs and added benefits? Medicare Advantage may be right for you.

Final thoughts: Need Help Deciding?

Medicare can be hard to understand, but you do not have to do it by yourself. We help you understand your choices at LMS Insurance Group. We will look at your goals, your income, your doctors, and your medicines and then help you make a plan that works for you. Get in touch with us immediately, and we will help you find your way through Medicare with ease.