Why You Should NOT Choose Medicare Supplement

Common Misconceptions About Medicare Supplement Plans

Many people assume that Medicare Supplement (Medigap) plans are their best option. And while they can be beneficial for some, they come with major drawbacks, particularly in terms of price and coverage.

The Biggest Downsides of Medicare Supplement Plans

1. High Monthly Costs

One of the biggest downsides of Medicare Supplement plans is their monthly premium. Depending on where you live and how old you are, these premiums can range anywhere from $80 to $400 per month. And the worst part? They increase every year.

Rate hikes for Medigap plans can range from 4% to 12% (or more) per year, meaning your monthly premium will continue to rise as you age.

2. No Prescription Drug Coverage

Medicare Supplement plans do not include prescription drug coverage. To get coverage for your medications, you must purchase a separate Medicare Part D plan. Depending on the plan and the medications you need, Part D coverage can range from $0 to $100 per month.

3. No Additional Benefits

Medicare Supplement plans do not include coverage for:

• Dental
• Vision
• Hearing
• Fitness benefits

To cover these additional needs, you’d have to buy separate insurance policies. This means stacking multiple plans—Medicare Parts A & B, a Medigap plan, a Part D drug plan, plus dental, vision, and hearing insurance—drastically increasing your total monthly cost.

4. Underwriting Risks & Limited Flexibility

Another major downside of Medigap plans is that once you’re enrolled, it can be hard to switch plans. Most insurance carriers require you to pass medical underwriting to qualify for a new plan. If you have health issues, you may be denied coverage, leaving you stuck with your current plan—no matter how high the premiums go.

The Alternative: Medicare Advantage Plans

Instead of a Medigap plan, many people find that a Medicare Advantage Prescription Drug Plan (MAPD) is a better alternative. These plans bundle Medicare Parts A & B, prescription drug coverage, and additional benefits—all in one plan.

Key Benefits of Medicare Advantage Plans

• Low (or $0) monthly premiums
• Includes prescription drug coverage
• Covers dental, vision, hearing, and fitness benefits
• No need for multiple insurance policies

In many cases, a Medicare Advantage plan will cost $0 per month, compared to the hundreds of dollars you’d pay for a Medigap plan with all the added coverage.

Additional Coverage Options

Since Medicare Advantage plans usually come with some out-of-pocket costs, many people choose to add two supplemental policies:

1. Hospital Indemnity Plan – Provides financial reimbursement if you’re hospitalized, covering co-pays and deductibles.
2. Cancer Insurance Plan – Offers a lump sum, tax-free payout if you’re diagnosed with cancer, helping cover out-of-pocket medical expenses.

By pairing a $0 premium Medicare Advantage plan with an affordable Hospital Indemnity and Cancer plan, most people end up saving hundreds (or even thousands) of dollars per year compared to a Medigap plan.

Who Should Consider a Medicare Supplement Plan?

While Medicare Advantage plans work well for most people, there are some cases where a Medicare Supplement plan might be the better choice:

• Frequent Travelers – Medicare Advantage plans have network restrictions, while Medigap offers nationwide coverage.
• People with Chronic Health Conditions – If you require frequent medical care, a Medigap plan can reduce out-of-pocket costs.
• Those Willing to Pay Higher Premiums for Predictable Costs – Medigap plans offer more predictable healthcare costs, but at a much higher monthly price.

Compare All Options Before You Enroll

Before choosing a Medicare plan, make sure you understand all your options. Whether you’re deciding between Medicare Supplement and Medicare Advantage or switching plans, knowing the coverage details, costs, and underwriting rules is crucial.

At Bluewave Insurance, we help people compare plans and find the best coverage for their needs. If you have questions or need assistance, give us a call at 800-208-4974—we’re happy to help!