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PEAK · Medicare Fundamentals

Medigap vs. Medicare Advantage

Supplement the gaps, or replace the whole structure — the other decision every Original Medicare client faces.

Once a client is on Original Medicare (Parts A & B), the cost-sharing gaps are still there — the 20% Part B coinsurance, the deductibles, and no cap on what they could spend in a bad year. There are two ways to handle that, and a client generally can’t do both: add a Medicare Supplement (Medigap) policy alongside Original Medicare, or switch to a Medicare Advantage plan that replaces Original Medicare’s coverage. Have this comparison before any plan shopping.

Medigap (Supplement)Medicare Advantage
What it doesPays the out-of-pocket gaps left by Original Medicare — deductibles and coinsuranceReplaces Original Medicare; delivers A & B benefits (and usually Part D) through a private plan
Relationship to Original MedicareWorks alongside it — client keeps Parts A & BReplaces it — client gets A & B benefits through the plan
Monthly premiumPlan premium on top of the Part B premiumOften $0 plan premium (Part B premium still applies)
Provider accessAny doctor or hospital nationwide that accepts MedicarePlan network, usually regional; may need referrals
Drug coverageNone — buy a standalone Part D plan separatelyUsually bundled in (MAPD)
Out-of-pocket capNone on its ownRequired annual MOOP cap
Extra benefitsMedical only — no dental, vision, hearing, OTCOften includes dental, vision, hearing, OTC, transportation
The one-way door A client cannot carry a Medigap policy while on Medicare Advantage — the Medigap policy pays nothing under MA. And dropping a Medigap policy to join Medicare Advantage means they may not be able to get that Medigap policy back later without medical underwriting, outside of specific guaranteed-issue windows. Treat switching as a serious, often irreversible decision — never minimize it as a quick way to “save the premium.”

When each is the better fit

Medigap tends to fit a client who

  • Travels or splits time between states and wants nationwide provider access
  • Sees multiple specialists and values no referrals and no network
  • Wants predictable cost-sharing (Plan G pays virtually everything after the Part B deductible)
  • Can afford the monthly premium and prioritizes low hassle at the doctor

Medicare Advantage tends to fit a client who

  • Is on a tight monthly budget and wants a $0 plan premium
  • Wants bundled dental, vision, hearing, or OTC benefits
  • Is comfortable with a network and possibly referrals
  • Wants one plan covering medical and drugs together
It’s a trade-off, not an upgrade A Medigap client giving up nationwide, no-referral access to save a premium is not automatically wrong — but they’re trading freedom and predictable costs for extras and a lower premium, with a network and possible underwriting risk on the way back. Make sure they understand both directions before enrolling.

Practice scenarios

Scenario 1
Robert, 70, has Original Medicare + Medigap Plan G + a standalone PDP. He’s healthy, travels to see grandkids in three states, and sees a cardiologist and a dermatologist. He heard about $0 Medicare Advantage plans with dental and asks if he should switch.
Likely stay on Medigap

Plan G plus nationwide, no-network access fits his travel and his two specialists. The dental benefit probably doesn’t outweigh losing that freedom — and if he dislikes MA later, getting Medigap Plan G back may require medical underwriting. Confirm his providers would be in any MA network first, but the honest default here is that his current setup is already a strong fit.

Scenario 2
Linda, 68, is on Original Medicare + a standalone PDP, on a fixed income. She has no specialists, uses one local primary-care doctor, and really wants dental coverage and hearing aids.
Medicare Advantage likely fits

Her needs line up with what MA bundles — $0 premium, dental and hearing extras, a MOOP cap, and one plan for medical + drugs. But confirm her primary doctor is in-network and that her prescriptions are on the formulary before recommending. The do-not-engage hard-stop rules still apply: confirm there’s no active employer coverage first.

Scenario 3
James asks: “My Plan F premium is high — can I drop it for a $0 Medicare Advantage plan, and just add the Medigap back later if I don’t like it?”
Caution — often a one-way door

Dropping Medigap to join MA is allowed, but getting that Medigap policy back later usually requires medical underwriting outside of guaranteed-issue windows — so it may not be available, or may cost far more. Don’t frame this as a reversible “try it and switch back” move. Lay out the trade-off honestly, confirm whether he’s in any guaranteed-issue window, and document the conversation.

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