Choosing the right Medicare coverage can feel overwhelming, especially when you’re trying to decide between Medicare Advantage and Medicare Supplement plans. Both options help cover healthcare costs, but they work in very different ways, and those differences can have a big impact on how much you actually spend each year. Some plans may look cheaper at first but cost more later, while others may have higher monthly premiums but fewer surprises when you need care. Knowing how each option works is the first step to making a smart, money-saving decision.
In this article, we’ll clearly explain how Medicare Advantage and Medicare Supplement plans compare, what types of costs you should expect, and which option may save you more money based on your situation. If you want expert help sorting it all out, The Medicare Family is here for you. We help seniors across all 50 states learn Medicare in simple English and find the right coverage for their needs. You can schedule a FREE call to get expert, unbiased advice, compare plans from 30+ top insurance companies, and receive lifetime support all at absolutely no cost. Medicare doesn’t have to be confusing, and you don’t have to figure it out alone.
Understanding Medicare Advantage and Medicare Supplement Plans
A Medicare Advantage plan, also called Part C, is an alternative way to get your Medicare coverage. These plans are offered by private insurance companies and bundle your health care benefits into a single policy. Most 2026 Medicare Advantage plans include Part D prescription drug coverage as part of the all-in-one plan.
In contrast, a Medicare Supplement plan, or Medigap, is not a replacement for Original Medicare. Instead, it works alongside your Original Medicare (Parts A and B) to help pay for costs that Medicare doesn’t cover, such as deductibles, copayments, and coinsurance. Understanding how these two distinct approaches affect your wallet and your access to care is the first step.
What Sets Medicare Advantage Apart from Medicare Supplement?
The main difference lies in how each plan interacts with the federal Medicare program. A Medicare Advantage (Part C) plan essentially replaces Original Medicare by delivering your hospital and medical coverage through a private insurer that contracts with Medicare.
On the other hand, a Medicare Supplement plan doesn’t replace Original Medicare; it adds to it. You remain enrolled in Medicare Part A and Part B, and your Medigap policy pays for many of the out-of-pocket costs that Original Medicare doesn’t cover.
You cannot have both Medicare Advantage and a Medicare Supplement plan at the same time. You must choose one path: the bundled private plan route with Medicare Advantage or the supplemental coverage route with Medigap.
Coverage Basics and Plan Structure
Medicare Advantage plans are required to cover everything that Original Medicare (Part A and Part B) covers. However, many plans go further by including additional benefits like prescription drug coverage, routine dental, vision, and hearing care, and even fitness programs.
Medicare Supplement plans primarily help pay Original Medicare’s out-of-pocket costs. While Medigap plans don’t include prescription drug coverage, you can enroll in a separate Part D plan if you want drug coverage.
Comparing Monthly Premiums and Member Costs
Typical Medicare Advantage Costs in 2026
Medicare Advantage plans are often attractive because many have very low or even $0 monthly premiums beyond your Medicare Part B premium. About two-thirds of MA plans include drug coverage and require no additional plan premium.
In 2026:
- The average Medicare Advantage premium is about $14 per month for 2026, though actual costs vary by plan and location.
- You must still pay your Part B premium, which is $202.90 per month in 2026 (or higher based on income).
- Medicare Advantage plans include an annual out-of-pocket maximum, which can be as high as $9,250 for in-network services in 2026, though many plans set lower limits.
Costs and benefits can vary significantly by plan, insurer, and geographic area.
Typical Medicare Supplement (Medigap) Costs in 2026
Medigap plans generally have higher monthly premiums, but those plans help cover many out-of-pocket costs that Medicare doesn’t. Premiums vary widely by plan type, location, and insurer, but range broadly across regions.
For example, a Medigap Plan G premium may range from about $124 to $802 per month, while a Plan K premium could range from roughly $56 to $300 per month depending on where you live.
Out-of-Pocket Expenses: What Seniors Really Pay
Beyond monthly premiums, true health care spending depends on your out-of-pocket costs when you receive care, like deductibles, copays, and coinsurance. Medicare Advantage plans have structured copays and an annual limit on covered services, while Medigap plans help cover many of these expenses after Original Medicare pays its share.
Medical Deductibles, Copays, and Maximums
Medicare Advantage plans include copays for most services and may have a deductible to meet first, but they protect you with an annual out-of-pocket cap that prevents unlimited spending.
Medigap plans vary by letter (Plan G, N, K, L, etc.), but many offer the peace of mind of cost predictability. Medigap Plan K’s out-of-pocket limit is $8,000 in 2026, and Plan L’s limit is $4,000 in 2026, after which the plan covers 100% of covered Medicare cost-sharing for the remainder of the year.
When Is One Plan Cheaper Than the Other?
Choosing which option is “cheaper” depends on how often you use medical care. A Medicare Advantage plan’s lower monthly premium may be great if you’re healthy and rarely visit the doctor. But if you need frequent care or have chronic conditions, the predictable costs of a Supplement plan could ultimately save you money.
Keep in mind that switching to a Supplement plan later in life may require medical underwriting in many states, which could mean higher costs or limited access to certain plans.
Key Factors That Affect Total Yearly Spending
Your total yearly Medicare costs go beyond premiums and include provider access, travel coverage, and how often you use medical services. Medicare Advantage plans generally operate with networks (HMOs/PPOs), which can limit where you can get care. In contrast, a Supplement plan gives you the freedom to see any doctor nationwide who accepts Medicare.
Prescription Drug Coverage Differences
Most Medicare Advantage plans bundle prescription coverage (Part D) into the plan itself making the process more convenient.
Supplement plans do not include drug coverage, so if you want prescriptions covered, you’ll need a standalone Part D plan on top of your Supplement premiums.
Conclusion
When comparing Medicare Advantage vs Medicare Supplement plans for 2026, the plan that saves you the most money depends on your personal health needs, budget, and how predictable you want your costs to be. Medicare Advantage plans often offer very low premiums and built-in drug coverage, while Supplement plans cost more monthly but can reduce surprise bills and give you the freedom to see any Medicare-accepting provider.
If you want help choosing the right option, The Medicare Family is here for you. We help seniors across all 50 states learn Medicare in simple English and compare plans from 30+ top insurance companies all at absolutely no cost to you. You canschedule a FREE call to get expert, unbiased advice and find the coverage that truly works best for your situation. Medicare doesn’t have to be confusing, and you shouldn’t have to navigate it alone.
