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Plan G vs. Medicare Advantage: The Real Numbers Side by Side?

Choosing between a Medigap Plan G and a Medicare Advantage plan can be tricky. Both plans offer different benefits and costs that you need to consider carefully. This article breaks down the key differences so you can make an informed decision.

Last updated: August 23, 2026

How Does Medigap Structure Coverage Compared with Medicare Advantage?

Medicare Part A covers hospital stays, while Medicare Part B covers doctor visits and other medical services. However, these parts don't cover everything. That's where a Medigap plan like Plan G comes in. It helps fill the gaps left by Parts A and B, such as deductibles and copayments.

Plan G is one of ten standardized Medigap plans that can be sold nationwide. The main advantage of Plan G is that it covers nearly all out-of-pocket costs. This means you pay less when you go to the hospital or see a doctor. However, there are some exceptions. For example, Plan G doesn't cover dental care, vision exams, or routine hearing tests.

How Does Medicare Advantage Structure Coverage Compared with Medigap?

Medicare Advantage (MA) plans are offered by private insurance companies approved by Medicare. These plans provide all the benefits covered under Original Medicare (Parts A and B), plus additional coverage like prescription drugs, dental care, and sometimes even wellness programs.

One key difference between MA plans and Medigap is that MA plans have networks. You must use healthcare providers within their network to get full benefits. This can be a limitation if you prefer to see specialists outside the plan's network.

How Do Total Costs Differ Between Medigap and Medicare Advantage?

When comparing costs, include premiums, deductibles, copayments, and out-of-pocket limits. Standard Plan G covers the Part A deductible but not the annual Part B deductible for people newly eligible for Medicare on or after January 1, 2020.

In contrast, Medicare Advantage plans often have an annual deductible that applies to most covered services. However, the total cost of MA plans can be lower because they include prescription drug coverage in one monthly premium, while Plan G requires a separate Part D plan for prescriptions.

Let’s break this down further:

Medicare plan networks, drug coverage, and costs can change each year. Before you enroll, check your doctors, prescriptions, pharmacies, and current plan documents.

- Medicare Advantage: You pay a monthly premium for the MA plan, which includes Part B coverage. Some plans may have an additional cost for prescription drug coverage.

How Does Out-of-Pocket Exposure Differ Between Medigap and Medicare Advantage?

Plan G covers the Part A hospital deductible and most standardized Original Medicare cost sharing. You still pay the annual Part B deductible, $283 in 2026, and costs for services Medicare does not cover.

Medicare Advantage plans have an annual limit on how much you can spend out of pocket each year for covered services. Once this limit is reached, the plan covers 100% of any remaining Medicare-covered costs for that year. However, prescription drugs often aren’t included in these limits and may have their own maximum.

How Do Provider Flexibility and Network Rules Differ Between Medigap and Medicare Advantage?

Flexibility is a big selling point for Plan G. You can see any doctor or hospital that accepts Medicare, without worrying about networks. This can be especially beneficial if you travel frequently or prefer to choose your healthcare providers freely.

Medicare Advantage plans offer more comprehensive coverage but come with network restrictions. You have to use in-network providers to get full benefits, which might limit your choice of doctors and hospitals.

Which Personal Coverage Factors Affect a Medigap and Medicare Advantage Comparison?

Choosing between a Medigap Plan G and a Medicare Advantage plan depends on several factors:

Compare the separate monthly premium of a Medigap policy with the copayments, coinsurance, and annual out-of-pocket limit of a Medicare Advantage plan. Run a routine-care scenario and a high-use scenario for each. Include Part B, prescription coverage, doctor access, and services outside the plan network. Use current premiums and plan documents instead of assuming that either predictable premiums or variable cost sharing will cost less.

- Healthcare Needs: Do you require services like prescription drugs or dental care? Medicare Advantage often includes these benefits in one package.

- Provider Choice: If having the freedom to choose any provider is important, Plan G offers this flexibility. Network restrictions of MA plans might be a drawback for some people.

In summary, both Medigap Plan G and Medicare Advantage have their pros and cons. Understanding your needs and comparing costs will help you make the right choice. Whether you value lower out-of-pocket costs or comprehensive coverage with network restrictions, there’s a plan that fits your lifestyle.

Where should you look next?

What else do people ask about medigap Structure Coverage Compared with Medicare Advantage?

• Medicare Supplement Plans Explained: How Medigap Works, What Plans Cost, and When to Buy?
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• Why Are Medigap Premiums Different If the Benefits Are Standardized?
• What Is Your Medigap Open Enrollment Period and What Happens If You Miss It?
• Can You Be Denied a Medicare Supplement Plan? Medical Underwriting Explained?
• Do Medigap Premiums Go Up Every Year? Rate Increase History and How to Compare Carriers?

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