Understanding Medicare Advantage vs. Supplements: What Most People Get Wrong During AEP

When the Medicare Annual Enrollment Period (AEP) rolls around from October 15 to December 7, many people rush to compare plans—only to realize they’re confused about the biggest decision of all: Medicare Advantage vs. Medicare Supplements (Medigap).

If you’re feeling overwhelmed, you’re not alone. Every year, thousands of Medicare beneficiaries in the Lehigh Valley make the wrong choice simply because they misunderstand how these two types of coverage actually work.

This guide breaks everything down so you can make a confident, informed decision before AEP ends.

What Is Medicare Advantage?

Medicare Advantage (Part C) is an “all-in-one” alternative to Original Medicare. Private insurance companies bundle your hospital (Part A) and medical (Part B) coverage—and often include extras.

Key Features of Medicare Advantage

  • Lower or $0 monthly premiums

  • Co-pays and out-of-pocket costs as you go

  • Includes limits on annual out-of-pocket spending

  • Often includes dental, vision, hearing, OTC credits, and gym benefits

  • Uses provider networks like HMO or PPO

Who Medicare Advantage Works Best For

  • People who want lower monthly costs

  • Those comfortable staying within a provider network

  • Individuals who want extra benefits not included in Medicare Supplement plans

What Is a Medicare Supplement (Medigap)?

Medicare Supplement plans work alongside Original Medicare, paying for the gaps—like deductibles, coinsurance, and certain out-of-pocket costs.

Key Features of Medigap Plans

  • Higher monthly premiums compared to Advantage

  • Very low or no out-of-pocket costs when receiving care

  • No provider networks—any doctor nationwide who accepts Medicare

  • No extra benefits like dental or vision unless paired with separate plans

Who Medigap Works Best For

  • People who travel or split time between states

  • Individuals with chronic health conditions or high healthcare usage

  • Anyone who wants predictable, low out-of-pocket costs

What Most People Get Wrong During AEP

The biggest confusion during AEP is thinking Medicare Advantage and Medicare Supplements can work together. They cannot be used at the same time.

Here are the top mistakes we see every year:

Mistake #1 — Thinking You Can Have Both

You must choose one or the other:

  • Medicare Advantage replaces Original Medicare

  • Medicare Supplement works with Original Medicare

You cannot enroll in both.

Mistake #2 — Choosing Based on Monthly Premium Only

Many people choose a Medicare Advantage plan because it has a $0 premium—but forget to look at:

  • Co-pays

  • Specialist costs

  • Out-of-network charges

  • Medication formularies

Sometimes a low monthly premium leads to a high yearly cost.

Mistake #3 — Not Checking Doctor Networks

Networks change every year. During AEP, always verify:

  • Is your doctor still in-network?

  • Are your specialists covered?

  • Are your preferred hospitals included?

Even small network changes can affect your entire plan experience.

Mistake #4 — Assuming Supplements Are “Too Expensive”

While Medigap premiums can be higher, many people end up spending less overall because:

  • Most plans cover nearly all medical costs

  • There are no surprise bills

  • You avoid co-pays and coinsurance

Total annual cost often matters more than monthly cost.

How to Decide Which Option Is Best for You

There is no one-size-fits-all answer, but here’s a simple breakdown:

Choose Medicare Advantage If You Want:

  • Lower or $0 premiums

  • Extra benefits like dental or vision

  • A more “all-in-one” style plan

  • Predictable out-of-pocket caps

  • Local network-based care

Choose a Medicare Supplement If You Want:

  • The freedom to see any Medicare-accepting doctor in the U.S.

  • Very low out-of-pocket costs

  • Coverage that does not change year to year

  • A plan that travels with you

  • Easy access to specialists without referrals

Still Unsure? Get Personalized Help Before AEP Ends

Choosing between Medicare Advantage and a Medicare Supplement is one of the most important decisions you’ll make for your health and finances. And it’s something you shouldn’t have to guess on—especially with deadlines approaching.

At Lehigh Valley Medicare Advisors, we:

  • Compare plans from multiple carriers

  • Review your doctors, prescriptions, and budget

  • Explain the differences in simple terms

  • Help you avoid common mistakes during AEP

You deserve a plan that fits your life, not just the cheapest or the one with the most ads.

Make An Appointment Today!