Recently Medicare Advantage plans are becoming more popular. The plans are offering more benefits and saving seniors more money on their healthcare costs. However, like all new products or services, Medicare Advantage plans do have their critics. Many seniors are confused about what option is better, a Medicare supplement or a Medicare Advantage plan. Talking to insurance agents or companies can be very trying because in a lot of cases the companies usually try to push one over another. So, what is the difference between the two types of insurance?

Medicare supplements have been around longer. When supplements first appeared, different insurance companies offered different plans with different benefits. In 1992, the federal government standardized Medicare supplement plans, to make the decisions easier for seniors. The standardization makes every Medicare supplement's benefits the same regardless of which company it was purchased from. For example, if two different insurance companies offered a Plan C, the benefits would be the exact same. The only difference would be in the plan premiums and the level of customer service. The plans were labeled with sequential letters. As of 2007, the plans ranged from Plan A thru Plan L. Not every plan is available in every state. What plan to choose depends on how much benefit is needed.

Medicare supplements work in conjunction with Medicare Parts A and B. Think of Medicare as a truck, the supplement is the trailer. After a doctor or hospital submits a bill, Medicare will approve another amount and pay its part. After that, the supplement will pick up whatever portion of the bill it was designed to pick up. Beyond that, the insured is responsible for the balance, if any. A good supplement, such as a Plan C, will pick up all of the deductibles and most of the coinsurances or co-payments.

The big downfall of supplements, are the plans premiums. The premiums on a supplement can be expensive, especially for someone in good or near good health. Medicare beneficiaries in poor health or are regularly hospitalized can benefit greatly from supplements. However, paying those premiums may not be worth it for those seeing a doctor a few times a year or only carry the insurance in case they may need it. Plus, the premiums go up every year. Most people carry supplements for years without ever using them for fear of not qualifying when they do need the extra insurance. This is true. Being accepted into

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