Medicare Supplement vs. Advantage Plans

Item
Medicare Supplement
Medicare Advantage
Written Scope of Appointment Signed by Prospect
No
Yes!
Required Networks for Hospitals & Physicians
No
Yes!
Carrier Mandated Annual Plan Changes or Discontinuance in Providing Coverage
No
Yes!
Annual Certification for Writing Agents
No
Yes!
CMS & Carrier Mandated Product & Market Training
No
Yes!
Vested Commissions Payout
Yes!
No
What is a Medicare Supplement?

A Medicare Supplement policy is a private health insurance plan which helps supplement Original Medicare. This means it helps pay some of the health care costs Original Medicare doesn’t cover. Insurance companies in most states can only sell a “standardized” policy identified by letters A through N. Each standardized policy must offer the same basic benefits; no matter which insurance company sells it. 

What is a Medicare Advantage Plan?

A type of Medicare health plan offered by a private company that contracts with Medicare to provide all Medicare Part A and B benefits. If enrolled in a Medicare Advantage Plan, Medicare services are covered through the plan and aren’t paid for under Original Medicare. 

Medicare Prescription Drug Plan (Part D)

Part D adds prescription drug coverage to Original Medicare. These plans are offered by insurance companies and other private companies approved by Medicare. However, a Medicare drug plan might only cover certain prescription drugs (on its “formulary” or “drug” list”). It is important to check whether current prescription drugs are on the Medicare drug plan’s list of covered prescription drugs before joining.