New-to-Medicare Bootcamp: Day 3
Why There's Really Only Two Options on Medicare
Welcome to Day 3 of the "New to Medicare" Bootcamp!
If you’re feeling like Medicare is just one big pile of confusion, you’re not alone. The good news is, we’re making sense of it all, one step at a time.
Each Bootcamp post builds on the last, so if you happened to miss Day 2 (where we talked all about Medicare costs and how to avoid penalties), I highly recommend giving it a read before diving in here.
👉
Click here to catch up on Day 2
Let’s get into Day 3!
First, a Reality Check
When you first start researching Medicare, it feels like there are hundreds of plan options.
But here’s the truth:
You really only have two types of plans to choose from once you sign up for Medicare Parts A and B:
- Medigap (also called Medicare Supplement plans)
- Medicare Advantage (also called Part C)
Every ad, every piece of mail, and every telemarketing call you get is ultimately pushing one of these two plan types. That’s it.
So let’s break them down, side by side so you can get a clear picture.
Step 1: Get Original Medicare (Parts A & B)
Before you can enroll in either Medigap or Advantage, you need to be enrolled in both Parts A and B of Medicare.
You must keep paying your Part B premium (which is $185/month in 2025, unless you’re in a high-income bracket). That cost stays the same no matter which plan type you choose.
Step 2: Choose Between Medigap and Advantage
To make this easy, let’s compare the two plan types side by side.
| Medigap | Medicare Advantage |
|---|---|
| Keeps Original Medicare in place | Replaces Original Medicare with private plan |
| Higher monthly premium (typically $90–$200+) | Often $0/month or low cost |
| Very little out-of-pocket once deductible is met | Pay copays as you go (doctor visits, labs, hospital, etc.) |
| See any doctor that takes Medicare | Must use plan’s network (may need referrals) |
| Buy a separate drug plan (Part D) | Drug plan is usually included |
| Less risk, more predictability | Lower upfront cost, but higher potential risk |
| Easier access to specialists | May need pre-approvals for certain services |
Understanding the Risk
- Medigap: You pay more monthly, but have fewer surprises. Your biggest out-of-pocket cost is typically the $257 Part B deductible (in 2025).
- Advantage: You may pay as low as $0/month, but each service has a copay, and your risk can go up to the plan’s maximum out-of-pocket, which can be as high as $9,350/year (though most are lower).
It really comes down to this:
- Want predictability, more provider freedom, and less hassle? You may prefer Medigap.
- Want a lower monthly cost and don’t mind networks or paying copays as you go? You might lean toward Advantage.
One Big Warning (That No One Tells You)
If you start with an Advantage plan and later want to switch to Medigap, you may have to answer health questions and could be denied coverage, unless you’re still in your first year of Medicare and qualify for the “trial right.”
This is super important, and unfortunately, it’s not something you hear in most commercials or sales calls.
So if you’re even thinking you might want a Medigap plan in the long run, it’s usually best to start there while you still have guaranteed access.
Bonus Topic: Plan G vs. Plan N
If you’re leaning toward a Medigap plan, your next step will be choosing which one.
The two most popular options are:
Plan G
- Covers everything except the $257 Part B deductible
- Once you pay that, you’re done for the year (except for any drug plan copays)
- Higher monthly premium, but no surprises
Plan N
- You pay the same $257 deductible, plus:
- Up to $20 for doctor visits
- $50 for emergency room visits
- Possibly an "excess charge" if your doctor doesn’t accept Medicare rates (rare and not allowed in a handful of states)
Plan N usually has a lower monthly premium than Plan G, so it’s a great option if you don’t mind a few small copays.
How to Decide What’s Right for You
Here are a few helpful questions to ask yourself:
- Do I want the freedom to see any doctor without worrying about networks?
- Am I okay with paying more monthly for less hassle later—or would I rather save each month and pay when I need care?
- How important is it to have predictable costs?
- Would I feel okay potentially paying more in a high-use year if it means lower premiums?
Everyone is different.
There’s no one-size-fits-all answer - but when you understand the differences, it becomes much easier to make a choice that fits your needs and your peace of mind.
Get Your Free Workbook
If you haven’t grabbed it yet, my 2025 Decoding Medicare Workbook has a handy side-by-side chart that compares Medigap vs. Advantage and helps you weigh your priorities.
📍 You can request it here:
