Choosing between Medicare Advantage and Medicare Supplement (Medigap) coverage depends on how you want to receive Medicare benefits and how predictable you want your costs to be. With 2026 premiums and deductibles announced, it’s a good time to review the pros and cons of each option.
What is Medicare Advantage?
Medicare Advantage (Part C) plans are offered by private insurers. They bundle your Medicare Part A (hospital) and Part B (medical) coverage and usually include Part D drug coverage. These plans often add extra benefits such as vision, hearing, dental, fitness programs and non‑medical perks like help with transportation or groceries[1].
Pros of Medicare Advantage
- Combined coverage and potential savings: Medicare Advantage wraps hospital, medical and usually drug coverage into one plan. In 2026 the average premium is projected to be around $14 per month[2], though some plans charge no additional premium beyond your Part B premium.
- Extra benefits: Many plans include dental, vision, hearing aids, gym memberships and, under new rules, non‑medical benefits such as assistance with utilities or home improvements[1].
- Enrollment flexibility: You can join, switch or drop Medicare Advantage plans each year during open enrollment (Oct 15 – Dec 7) and, if you are already in a Medicare Advantage plan, you have another window (Jan 1 – Mar 31) to switch to a different plan or back to Original Medicare[3].
Cons of Medicare Advantage
- Limited provider networks and prior authorization: Most Medicare Advantage plans are HMOs or PPOs. They may restrict you to a specific network of doctors and hospitals and may require prior authorization for certain services; going out‑of‑network can mean higher costs or no coverage[4].
- Variable out‑of‑pocket costs: Although premiums may be low, copayments and coinsurance can add up. Out‑of‑pocket maximums vary by plan, and you still pay the Part B premium (which is $202.90 per month in 2026 and has an annual deductible of $283[5]). Higher‑income beneficiaries pay more due to income‑related monthly adjustments[6].
What is Medigap (Medicare Supplement)?
Medigap policies are supplemental insurance sold by private carriers that work with Original Medicare (Parts A and B). They help pay your share of deductibles, copayments and coinsurance[7].
Pros of Medigap
- Predictable costs: Medigap plans typically cover much of the cost sharing left by Original Medicare, including the Part A hospital deductible of $1,736 in 2026[8]. That means you have less unexpected out‑of‑pocket spending when you see providers.
- Freedom to choose providers: With Original Medicare plus a Medigap policy, you can see any doctor or hospital that accepts Medicare nationwide without worrying about networks or referrals.
- Standardized benefits: There are up to 10 standardized plans (A, B, C, D, F, G, K, L, M and N). Plans C and F are unavailable to people who first became eligible for Medicare after January 1, 2020[9].
Cons of Medigap
- Separate drug coverage: Medigap plans don’t include Part D prescription drug coverage—you’ll need to buy a separate Part D plan.
- Higher premiums: Monthly premiums can range from around $30 to well over $400, depending on your age, state and chosen plan[10]. Over time these premiums may increase.
- Enrollment restrictions: If you try to buy Medigap after your six‑month open enrollment period (which starts when you’re first enrolled in Part B and are 65 or older), insurers can deny coverage or charge more based on your health.
New Cost Changes in 2026
- Part B premium and deductible: CMS announced that the standard Part B premium will be $202.90 per month in 2026 and the annual deductible will be $283, both increases over 2025[5].
- Part A deductible and coinsurance: The Part A inpatient hospital deductible will rise to $1,736 in 2026; coinsurance for days 61–90 will be $434 per day and $868 for lifetime reserve days[11].
- Part D changes: Under the Inflation Reduction Act, a new $2,100 out‑of‑pocket cap on prescription drug costs begins in 2026. The annual Part D deductible is estimated to increase slightly to $615[12].
Bottom Line
Medicare Advantage may be attractive if you want one plan with extra benefits and potentially low premiums, but you must be comfortable with provider networks and variable out‑of‑pocket costs. Medigap offers predictable costs and freedom to see any Medicare provider but usually costs more and does not include prescription drugs. Consider how often you use health services, whether your providers are in network and how much risk you’re willing to take on when choosing between these options.