Medicare Advantage and Medicare Supplement are both types of private health insurance plans that work alongside Original Medicare (Part A and Part B). However, they differ in several key ways. Medicare Advantage (Part C) replaces Original Medicare and provides coverage for all of the benefits covered under Part A and Part B, and often includes additional benefits such as prescription drug coverage, and routine vision, hearing, and dental benefits. Medicare Supplement (Medigap) plans work with Original Medicare to help pay for certain out-of-pocket costs such as coinsurance, copayments, and deductibles. Medigap plans do not include prescription drug coverage; you must buy a separate Medicare Part D drug plan if you want that coverage.

Medicare Advantage plans and Medicare Supplement plans can help reduce your out-of-pocket expenses. Medicare Advantage plans have a yearly limit on your out-of-pocket costs, which means once you hit the limit, the plan pays for all covered medical expenses for the rest of the year. Medigap plans pay some or all of the out-of-pocket costs not covered by Original Medicare, which can help reduce your overall healthcare expenses.

Medicare Advantage and Medicare Supplement plan typically cover a wide range of healthcare services, including hospital stays, doctor visits, lab tests, preventive care, and more. Medicare Advantage plans also often include additional benefits such as prescription drug coverage, and routine vision, hearing, and dental benefits. It's important to review the plan details to see exactly what services are covered.