California is one of the most competitive markets in the U.S. for options surrounding Medicare coverage and it’s various gaps. We even have split Blue Cross and Blue Shield into two separate and competing carriers which is unique in the U.S. Let’s face it..from a Medicare supplement insurance carrier’s perspective…California is a huge market. This is good news for you. We have all kinds of Medicare plans and even more Advantage plans. Occasionally, having too many options can be overwhelming so let’s as least try to compare and narrow down the differences between California Medicare supplement and California Advantage plans.

First, what exactly are we talking about when comparing California Medicare supplement plans and Advantage plans? That’s a good place to start. We’ll start with some general comparisons and then dig down deeper into the details. Medicare supplements work to wrap around or work in conjunction with traditional Medicare by filling in the gaps in coverage. You pay a monthly premium for the California Medicare supplement plan plus any costs associated with traditional Medicare such as Part B monthly premium. The two plans are separate and work together. The premiums and costs for a Medicare supplement insurance plan generally run between $100-$200 depending the plan of choice and your age/area. The F plan for California medigap covers all the different gaps of Medicare is the plan we strongly recommend.

The California Advantage plans are something entirely different. Advantage plans are the newest re-packaging of Medicare HMO for the most part. With California Advantage plans, Medicare turns over it’s core benefits to the private carrier which then offers the entire suite of available benefits. They do not work in conjunction with each other the way California Medicare supplements work. This can offer a great deal more flexibility in terms of plan benefits and costs. How does this translate for the actual California Medicare shopper?

At first look, many people may gravitate towards the low or even no monthly cost associated with Medicare Advantage plans but keep in mind that there is no free ride in the Universe. This holds true for California Medicare options as well. What exactly are we giving away to have such low-priced plans for health care coverage with Medicare. This question really goes back to whole question of HMO versus (for a good comparision) PPO. HMO care will be managed more stringently and this starts with the providers you are able to access. These providers may be physicians or facilities like hospitals. This is an inherent quality (or limitation) of HMO’s and it’s part of how they are able to reduce expenses. The providers that participate with the California Medicare Advantage plan agrees to manage care as they assume the risk on a payment per client schema. This means that regardless of how we like to view it, there’s an incentive to keep costs per enrollee as low as possible with an Advantage plan. So what’s are take on the California Medicare supplement plan versus Advantage?

If you cost is the absolute only consideration and you cannot possible afford premium, you may have to look at Advantage plans. If not, the Medicare supplement will provide you with the most options available later on if you have health issues. Having access to the best providers can be the difference between life and death and this distinction only becomes stronger as time goes on. The simple litmus test is this…I’ll make sure my parents have a California Medicare Supplement plan.