Which is Better Medicare Advantage or Medicare Supplement?
The answer is, it depends. Isn’t that helpful?
The answer depends on your situation, location, medications, medical history, etc. Understand that the following represents our opinion, and is in no way meant to be a recommendation for YOU. We can only make a proper recommendation after understanding your unique situation and needs.
The Pros of Medicare Advantage (MAPD) / Part C Plans
Price - Medicare Advantage plans are less expensive than supplement plans. Often by $150-$200 per month.
Extra Benefits - Medicare Advantage Plans often include extra benefits, like dental, vision, hearing aid coverage, and more at no extra cost. These extra benefits are one reason some prefer Part C plans.
Part D Included - Typically Medicare Part D Drug Coverage is included with Medicare Advantage plans at no extra cost
Out-Of-Pocket Cap - Traditional Medicare has NO out-of-pocket limit. This means your potential risk is unlimited. All Medicare Advantage Plans have out-of-pocket limits which will limit your risk somewhat. Still MooPs can be anywhere from $2,000 - $10,000 depending on the plan you pick.
The Cons of Medicare Advantage
Networks - Medicare Advantage plans typically have doctor networks, and seeking care from a doctor that is not in the network may cost significantly more or not be covered by your plan. This means you may not be able to the doctors of your choosing. Some elite institutions, like Mayo Clinic and Cleveland Clinic are NOT ACCEPTING ANY Medicare Advantage Plans.
Access to Care - Medicare Advantage Plans often have more barriers to accessing medical care than traditional Medicare. These can include, prior authorizations (where the insurer get’s to decide whether your treatment is covered) and things like referrals to see specialists.
Cost - While MAPD plans limit your out-of-pocket expense, you may still end up spending several thousand dollars in a year if you’re sick.
The Pros of Medicare Supplement / Medigap Plans
Coverage - Medicare Supplement Plans generally pay very generously for medical care. In some cases, plans pay nearly 100% of covered medical expenses. I call these Cadillac plans.
Network - Medigap plans typically allow you to see any doctor that accepts Medicare. Functionally this is like having no network since over 95% of doctors accept Medicare. This applies across all 50 states and can help guarantee your access to elite medical systems, like Mayo Clinic, Cleveland Clinic, etc.
Access to Care - Medicare Supplement plans have no referrals required to see specialists and no prior authorizations needed for procedures (except for a small number of major surgeries)
The Cons of Medicare Supplement Plans
Cost - Medicare Supplement plans are more expensive in terms of monthly premiums. Since they go up over time, what started as an affordable premium could become unaffordable by the time you’re 80.
Part D Not Included - Medigap plans do not cover Part D drug coverage, so you have to buy that separately, often at an additional cost.
Dental, Vision, and Hearing Not Included - Medigap plans also do not cover routine dental, vision or hearing benefits. As such purchases often buy separate coverage for these, again at an additional cost.
Who Buys Which Plan?
Obviously this is going to vary based on the individuals situation, and this is just our observation, not fact.
We observe, people who buy Medicare Supplement plans often fall into one of these categories;
People who are Higher Income - While supplement plans offer some generous benefits, not everyone can afford them. According to a Kaiser Family Foundation Survey from 2023, Medigap owners tended to be higher income compared to Medicare Advantage Plan owners.
People who are Sicker - Supplements can be appealing to those with more complex medical histories because they tend to pay very generously when you seek medical care.
Frequent Travelers or People Who Value Access to Care - Medicare Supplement plans travel well across all 50 states since they basically do not have a doctor network. They also often don’t have prior authorizations for services.
People who like a Predicable Cost - Medigap plans also appeal to those who like the idea of paying a fixed price each month and having very minimal variable cost if and when they seek medical care.
We observe, people who buy Medicare Advantage plans often fall into one of these categories;
Value Shoppers - Medicare Advantage plans can offer extra benefits and lower out-of-pocket costs in general compared to Medicare Supplement Plans. According to a Kaiser Family Foundation study in general purchasers of Medicare Advantage plans reported lower incomes compared to those who bought Medicare Supplement plans.
People that live in Larger Cities - Medicare Advantage plans vary from county to county and are more wide spread in urban areas compared to rural areas. This is because larger population areas tend to have more competitive (objectively better) Medicare Advantage plans, benefit wise.
People Who Are Comfortable Staying In-Network - In general people with Medicare Advantage should get comfortable with seeking care in-network.
Which is Most Popular?
According to Kaiser Family Foundations 2025 survey,
Medicare Advantage is the most popular with 54% of people on Medicare choosing this approach. UnitedHealthcare has the largest number of members, followed by Humana.
Medicare Supplement plans are chosen by 40% of Medicare beneficiaries. UnitedHealthcare / AARP has the largest number of members, followed by Mutual of Omaha.
The Remaining 6% of people have no coverage other than Medicare Part A & Part B.
Which is Best for Me?
Again the answer is, it depends. As advisors we would consider the following to make a recommendation;
Your Medical History and Care Needs
Your Medications and Doctors
What Plans are Available in Your Specific Area
Your Preferences for Access to Care
Your Budget
You don’t have to figure it all out yourself. We’d be glad to help!