Medicare Advantage and Medicare Supplement (Medigap) plans offer different benefits, costs, and provider access. Choosing between them depends on your healthcare needs, budget, and lifestyle:
- Medicare Advantage: Combines Parts A & B, often includes prescription drugs, vision, dental, and other extras. Lower premiums (average $17/month in 2025), but limited to network providers and has out-of-pocket maximums (up to $9,350 in 2025).
- Medicare Supplement (Medigap): Works with Original Medicare to cover out-of-pocket costs. Higher premiums ($65–$450/month), but no network restrictions and nationwide provider access. Requires separate Part D for prescriptions.
Quick Comparison
If you want lower premiums and extra benefits, Medicare Advantage may suit you. For flexibility and broader provider access, Medigap is a better choice. Evaluate your needs, costs, and travel habits to decide which plan fits best.
Medicare Advantage vs. Medicare Supplements 2024: Which is Better?
Medicare Supplement vs. Advantage: Main Differences
Understanding the differences between Medicare Advantage and Medicare Supplement (Medigap) plans can help you make a more informed decision. Medicare Advantage combines Parts A and B into one plan, while Medigap works alongside Original Medicare to help manage out-of-pocket costs [4].
The main differences lie in their structure, costs, and provider access.
Side-by-Side Plan Comparison
There are differences that impact your costs and flexibility when accessing care. For instance, Medicare Advantage may offer lower premiums and include extra benefits like vision or dental, but it often limits you to network providers and may require referrals. On the other hand, Medigap provides broader access to providers, no referral requirements, and nationwide coverage - ideal for frequent travelers.
Cost is another important factor. Research shows 23% of Medicare Advantage users spent over 10% of their income on healthcare, compared to 17% of Medigap users [2]. Additionally, while Medicare Advantage plans often include Part D for prescription drugs, Medigap requires a separate Part D plan, which starts at around $10 per month [3].
If you travel frequently or prefer more flexibility in choosing providers, Medigap might be the better option. However, if you’re looking for lower premiums and additional benefits, Medicare Advantage could be a good fit [2].
Medicare Supplement Plans Explained
Let’s dive into how Medigap plans work with Original Medicare to cover those gaps in your healthcare coverage.
About Medicare Supplement Plans
Medicare Supplement Insurance, often called Medigap, is designed to work alongside Original Medicare by covering expenses like copayments, coinsurance, and deductibles [7]. One major perk? As long as you pay your premiums on time and provide accurate application details, your policy is guaranteed to renew [8].
"Medicare Supplement Insurance (Medigap) is extra insurance you can buy from a private health insurance company to help pay your share of out-of-pocket costs in Original Medicare." - Medicare.gov [7]
Plan Costs and Coverage Details
Medigap offers standardized plans (A, B, D, G, K, L, M, and N), each with different levels of coverage. Here’s a quick breakdown:
What affects your premium? Several factors, including:
- Your age at the time of purchase
- Where you live
- The pricing method used by the insurer
- Whether you use tobacco [10]
Doctor and Hospital Choice
Medigap isn’t just about costs - it’s also about access. These plans allow you to see any doctor or hospital in the U.S. that accepts Medicare [5]. Highlights include:
- Nationwide coverage
- Some plans even offer emergency coverage for foreign travel [11]
- Freedom to stick with your current doctors
Roughly 81% of traditional Medicare enrollees opt for supplemental plans to keep healthcare costs manageable [2]. If you’re in Arkansas - or anywhere else - and value flexibility, especially for travel, Medigap could be a great fit. Plus, the six-month open enrollment period gives you the best rates, regardless of your health status [9].
Medicare Advantage Plans Explained
About Medicare Advantage Plans
Medicare Advantage (MA) plans combine Parts A and B, and most also include Part D coverage [12]. These plans are becoming more popular, with nearly 33 million people - 54% of eligible Medicare beneficiaries - enrolled by 2024 [12]. Let’s take a closer look at the costs and additional benefits they offer.
Plan Costs and Extra Benefits
MA plans are known for their affordability, with average premiums set at $17 in 2025 [5]. Some plans even offer $0 monthly premiums, although the Part B premium still applies [3].
"There are trade-offs in choosing one kind of coverage over the other. A Medicare Advantage plan may have zero-dollar premiums, availability of extra benefits, reduced cost sharing for many services and an out-of-pocket spending limit. Those things are attractive to people, but it also comes with provider networks and prior authorization."
– Meredith Freed, senior policy manager with KFF's program on Medicare policy [12]
While these benefits can be appealing, they come with some limitations, especially regarding provider networks.
Network Rules and Limits
In Arkansas, particularly in rural areas, network restrictions often affect access to care. MA plans generally require members to use in-network providers, may need prior authorizations, and can limit access to care in less populated regions [12].
A study at Ozarks Community Hospital showed that, over two years, MA plans reimbursed $4.5 million less than traditional Medicare for the same treatments [13]. In rural areas, where MA usage has doubled (from 20% to 40% of reimbursements), these lower reimbursements make it harder for providers to deliver care to vulnerable patients [13].
Choosing a Plan in Arkansas
What to Think About
When deciding on a plan in Arkansas, it's important to weigh factors like cost, provider access, extra benefits, and travel coverage. Local circumstances can play a big role in your choice.
In 2025, the average Medicare Advantage premium in Arkansas is $7.74, while Medigap costs range from $65 to $450 [1][5]. For those in rural areas, Medigap's broad provider access may be more appealing compared to Medicare Advantage, which often has network restrictions.
Arkansas Medicare Help
Once you've considered these factors, take advantage of local resources to help you make an informed decision. Arkansas provides support through the State Health Insurance Assistance Program (SHIP), which offers free, unbiased counseling. You can reach SHIP by calling 1-224-6330 [1].
For personalized guidance, contact our Medicare experts in Arkansas who can assist with Medicare decisions. With 673,546 Medicare beneficiaries in Arkansas [1], SHIP can help you explore your options, including the 90 Medicare Advantage plans, 16 prescription drug plans, and 12 Medigap plans available statewide [1].
Next Steps
Now that you understand the differences between plans, here’s how to move forward with Martin Agency or other providers.
Key Things to Keep in Mind
When choosing your Medicare plan, consider these factors:
- Provider Access: Medigap allows you to see any provider nationwide that accepts Medicare. On the other hand, Medicare Advantage usually limits you to a network of providers.
- Costs: Check the latest premiums. Medigap tends to have higher monthly costs but fewer out-of-pocket expenses, while Medicare Advantage may have lower premiums but higher costs when you need care.
- Extra Benefits: Medicare Advantage often includes dental, vision, and prescription drug coverage. Medigap does not, so you’ll need a separate Part D plan for prescriptions.
- Travel Considerations: If you travel frequently, Medigap’s nationwide coverage might be a better fit, as Medicare Advantage is often limited to specific service areas.
"Whether you choose to apply for a Medicare Advantage plan vs. a Medicare Supplement insurance plan depends on your needs." – Cigna Healthcare [4]
Steps to Take
For Medicare Supplement Plans:
- Compare policies during your Medigap Open Enrollment Period to get the best rates [15].
- Request quotes from multiple insurers for the specific Medigap plan you’re considering [15].
For Medicare Advantage Plans:
- Use the Medicare.gov Plan Compare tool to explore local options [5].
- Check which providers are included in the plan’s network in your area.
Timing Tips
- Enroll during your initial enrollment period to avoid coverage gaps and penalties [5].
- Keep October 15 to December 7 on your calendar for making any annual enrollment changes [5].
For more personalized advice, reach out to Arkansas's State Health Insurance Assistance Program (SHIP). They can help you decide which plan best suits your healthcare needs and budget.
Finally, take the time to prioritize what matters most to you - whether it’s cost, provider flexibility, or additional benefits. This will ensure your choice aligns with your healthcare goals.
