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Choosing between Medicare Advantage and Medigap in New Jersey

On Behalf of | Sep 28, 2022 | Long-Term Disability Insurance

If you are eligible for Medicare benefits in New Jersey, there are two types of advantage plan options available to you. You can choose to enroll in a Medicare Advantage plan or purchase a Medigap policy. While both options can help you cover your medical costs, they work in very different ways.

Medicare Advantage plan in New Jersey

Medicare Advantage plans are offered by private insurance companies that contract with Medicare. Essentially, these plans provide the same level of coverage as traditional Medicare; however, they may also offer additional benefits, such as vision care, dental care and prescription drug coverage.

Medigap policy

A Medigap policy is a type of supplemental insurance that can help you pay for some of the costs not covered by Original Medicare, such as deductibles, coinsurance and copayments. Medigap policies are offered by private insurance companies and are standardized by the federal government. This means that all Medigap policies offer the same basic benefits, but prices may vary from company to company.

Reasons to choose Medicare Advantage plans over Medigap policies

As you approach age 65, private long-term disability and health insurance policies generally become much more expensive or even unavailable. If you are healthy and do not have any preexisting medical conditions, a Medicare Advantage plan may be a more affordable option than purchasing a Medigap policy.

In addition, Medicare Advantage plans often offer additional benefits that Medigap policies do not cover, such as dental care, vision care and prescription drug coverage. If you think you will need these types of benefits, a Medicare Advantage plan may be the better choice for you.

Reasons to choose Medigap policies over Medicare Advantage plans

If you have certain preexisting medical conditions, you may be able to get coverage for them through a Medigap policy even if they are excluded from your Medicare Advantage plan. In addition, Medigap policies do not have network restrictions, so you can see any doctor who accepts Medicare.

Budgeting for healthcare costs in retirement can be difficult. There are a lot of different factors to consider, and it can be hard to know what the best option is for you. However, by taking the time to understand your choices, you can make an informed decision that will help you keep your costs down while still getting the coverage you need.

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