Medicare Advantage vs. Medigap in 2025 – What to Know
The Takeaway
- Medicare Advantage (MA) rolls hospital, doctor, and often drug coverage into one plan.
- Medigap works with Original Medicare to cover deductibles and co-pays.
- In 2025, the $2,000 Part D cap shifts the cost equation.
- MA plans tout perks, but come with networks and restrictions.
- Medigap offers stability and provider freedom, but higher premiums.
Medicare Advantage: The bundled approach
Medicare Advantage (Part C) combines Parts A, B, and usually D, often with added benefits. Lower premiums and extra perks appeal, but drawbacks include limited networks, prior authorizations, and annual benefit changes.
Medigap: The safety net
Medigap supplements Original Medicare by covering out-of-pocket costs. Benefits include nationwide access and predictable expenses, though premiums are higher and extras like dental or vision are excluded.
What’s new in 2025
The $2,000 drug cost cap applies regardless of plan type. Advantage plans keep expanding benefits, but regulatory scrutiny is tightening. Medigap may appeal to those prioritizing stability and provider access.
Questions to ask yourself
- Do you prefer lower premiums or predictable costs?
- Are your doctors in-network?
- Do you travel often?
- Do you value extras like dental or prefer broad access?
Disclaimer: This article is for informational purposes only and is not a substitute for professional advice.
