November 19, 2025 • 8 mins
“Hey Mike, which is better, Original Medicare, Supplement (Medigap) Plans, or Advantage Plans?”
Discover why there’s no perfect solution for senior healthcare plans and how to research which is right for you.
Text your questions to 913-363-1234.
Request Your Wealth Analysis by going to www.retireontime.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Mike (00:05):
Welcome to How to Retire On Time, a show that answers
your retirement questions. We'rehere to move past that
oversimplified advice you'veheard hundreds of times.
Instead, we're we're gonna getinto the nitty gritty here. Have
some fun. As always, text yourquestions to (913) 363-1234.
And remember, this is just ashow, not financial advice.
David, what do we got today?
David (00:24):
Hey, Mike. Which is better, traditional Medicare,
Medigap plans, or Advantageplans?
Mike (00:31):
So I've got my opinion, but what's your opinion? Because
you are the director of healthcare.
David (00:36):
I am. Yes.
Mike (00:36):
You're you're kinder than I am on these things, but I
mean, what's your take on this?
David (00:41):
There's no one answer that is correct that's gonna fit
for everybody. And I know you'vesaid this on this show about
finances.
Mike (00:50):
There's no such thing as a perfect investment product or
strategy.
David (00:53):
Yeah. That's right. There are lots of questions that we
would ask that would help usguide you.
Mike (00:57):
Here's the pattern I've noticed. I'm curious to get your
take on this. I know we talkabout this over and over
internally, but just forconversation sake, I have found
traditional Medicare on its ownis fine. It's not really good or
bad. It's just fine.
If you're healthy, it's great.If you're healthy and just want
maybe dental or extra things,the advantage plans can work.
(01:19):
But as long as you're healthyMhmm. If you're not healthy, or
you have maybe you didn't winthe lottery when it comes to
genetics, you've got a lot offamily history, a lot of heart
disease, a lot of potentialstrokes, or whatever it might
be. Yeah.
Medigap plans can hedge therisk. Insurance is not an
investment, but it'sunderstanding which risks you
wanna get rid of, and whichrisks you're okay taking. Yeah.
(01:41):
I mean, it's like, I don't wannago down a rabbit hole of
Affordable Care Act insurance orprivate insurance, you know,
before senior health carebenefits. But healthier people
that can take on more risk andmaybe want to reallocate their
funds to be used for other typesof insurance, Advantage might be
great, but for the unhealthy,I'd hate to be unhealthy going
to the hospital over and overagain on an Advantage plan.
(02:02):
That's my opinion. I mean,what's your take on this?
David (02:04):
Yeah. You're definitely gonna be subject to more out of
pocket costs with a lot ofAdvantage Plans because I mean,
they do have a maximum out ofpocket, but it's generally much
higher than if you had asupplement.
Mike (02:16):
But that doesn't cover everything.
David (02:17):
Yeah. It might not. You're subject to whatever the
plan will allow to be covered.Right? Yeah.
And so you don't ever reallyquite know exactly for sure what
that is either until you getthere.
Mike (02:28):
Health care costs continue to go up, which puts more
pressure on these plans. Yes.And so if you can afford it, and
you have less healthy heritage,or maybe you've experienced,
when you're 65 years old, youcannot be denied from a Medigap
plan or supplemental plan.Right?
David (02:46):
Yeah. So when you're initially going into Medicare at
65 or whenever your initialenrollment period is, It's a
guaranteed issue.
Mike (02:55):
Even at 70 years old, you're leaving private insurance
Yes. Retiring then, you can getin there.
David (02:59):
Right.
Mike (02:59):
Cannot be denied.
David (03:00):
That's exactly right. But if you've already been in
Medicare for a while and you'vehad Advantage and you wanna
switch to a supplement plan withoriginal Medicare, you'll be
subject to underwriting. That istrue. You gotta pass. Yeah.
You gotta pass. So that's gonnabe different for everybody. You
might have a health history ofbad stuff going on.
Mike (03:17):
So when you read those articles online, everyone should
do x y z, just know that's a badopinion. Agreed.
David (03:25):
And then there's the do you like a buffet one stop
shopping? Do you want all ofyour dental, and hearing, and
vision, and health care all inone package?
Mike (03:34):
Mhmm.
David (03:34):
Then probably an Advantage Plan will help you.
Could be not guaranteed, butcould be right for you.
Mike (03:40):
Yeah. And this gets tricky too, because if you travel Mhmm.
Not all Advantage Plans I don'tthink I can't think of a single
Advantage Plan that's gonnacover you overseas if you got
sick over there and had to comeback. And so there's a lot of
nuance when it comes to yourlifestyle expectations
David (03:54):
That's right. And your health care risks. If you are
traveling a lot, then originalMedicare with with a supplement
is better because there's nonetwork that you're tied to. You
can go anywhere that acceptsMedicare.
Mike (04:05):
Yeah. So there's a lot to consider. I think the takeaway
is which is better? What's yourhealth like? Yeah.
What's your family history like?There's a lot to consider here,
and let's not dive into thoseoversimplified, I guess,
opinions.
David (04:18):
Sure. I mean, also, what's your budget? Because you
will have to pay everybody paysthe same for Part b. Right?
Every person that's on Medicare,they pay that Part b premium.
Mike (04:28):
Yep. Part b is Medicare, not to be confused with plan
Yes. A b c d e f g x y.
David (04:33):
Exactly right. Yes. There's so many
Mike (04:36):
Plans are Medigap. Parts are Medicare.
David (04:39):
Yes. So when everybody pays that, no matter if you're
on Advantage or OriginalMedicare, everybody will pay
that that part b. And then ontop of that, if you're gonna do
a supplement plan, you have topay that premium. And then if
you want dental and health,like, all these premiums start
stacking up on top of eachother. And so if if you can
afford that and it gives you andit fits your lifestyle, then go
(04:59):
for it.
Mike (04:59):
But some couldn't you just go direct carrier? So like,
let's say you do a Medigap planor traditional Medicare Mhmm.
Doesn't cover dental, butcouldn't you just contact a
local dentist? I guess yourwife's a dentist. Yeah.
I mean, I think if you just wantyour basic checkups
David (05:15):
Mhmm.
Mike (05:16):
You could just pay cash. You could. And they're probably
happier to get cash than to dealwith insurance companies.
David (05:21):
Yes. Dental practices do have their own sort of standard
rates. Right? And they mighthave a discount for cash paying
people, then just skip theinsurance companies altogether,
which is easier, I can say fromexperience.
Mike (05:33):
And then you've got these other ministries.
David (05:36):
Mhmm.
Mike (05:36):
So this is not insurance, but something that can be
considered, because it's not apart of the question. They
probably didn't even know theyasked this question.
David (05:42):
Right.
Mike (05:43):
The one I'm thinking of is like health care ministries.
David (05:45):
Is it like Christian health care ministries?
Mike (05:47):
Yeah. Whatever that one is. It's not traditional health,
but like they we're notrepresenting them quite well
here, but they do they do dentaltoo and other things?
David (05:56):
I think, if I remember right, it could be just health.
I'm not sure about dental. Wecould look it up and put
something in the show notes.But, yeah, you're basically
paying cash to the health careprovider, and then you submit
your receipt to this group, andthey reimburse you, and there's
a formula.
Mike (06:11):
There's other out of the box ways that you can plan for
health care. Yeah. For dental,vision, and just other potential
needs. And it all comes down toa simple cash breakeven
analysis. Insurance is not aninvestment.
The more you pay, the more riskhas been transferred to the
(06:32):
insurance company. Yeah. Theodds are in their favor. That's
how it works. As Americans weregetting sicker earlier, and were
getting sicker longer than everbefore, because we keep living.
David (06:42):
Mhmm.
Mike (06:43):
So expect health care costs to continue to go up.
Yeah. But all that said, I Iwould invite people to do some
due diligence Yeah. And tofigure out what is right for you
and to try and work with someonethat maybe isn't on a
commission. You're not on acommission
David (06:58):
I'm not.
Mike (06:58):
Schedule when it comes to our health care.
David (07:00):
There is that danger, and we don't wanna cast a wide net
over all agents out there.They're all just pointing you
towards the plan that gives themthe greatest commission, but it
is a possibility. People
Mike (07:10):
Yes. Doing their best. Yes. But the commission may skew
it's not like more commission orless commission when it comes to
advantage plans. It's all thisit's all the standardized bit.
But it's either does it pay acommission or does it not pay a
commission? Yes. And that mayskew some things. Do your
research. Many people don't knowor realize that that could
exist.
(07:30):
That's all the time we've gotfor the show today. If you
enjoyed the show, considersubscribing to it wherever you
get your podcasts. Just searchfor how to retire on time.
Discover if your portfolio isbuilt to weather flat market
cycles or if you're missing taxminimization opportunities that
you may not even know exist.Explore strategies that may be
able to help you lower youroverall risk while potentially
(07:51):
increasing your overall growthand lifestyle flexibility.
This is not your ordinaryfinancial analysis. Learn more
about Your Wealth Analysis andwhat it could do for you
regardless of your age, asset,or target retirement date, go to
www.yourwealthanalysis.com todayto learn more and get started.
Welcome to How to Retire On Time, a show that answers
your retirement questions. We'rehere to move past that
oversimplified advice you'veheard hundreds of times.
Instead, we're we're gonna getinto the nitty gritty here. Have
some fun. As always, text yourquestions to (913) 363-1234.
And remember, this is just ashow, not financial advice.
David, what do we got today?
David (00:24):
Hey, Mike. Which is better, traditional Medicare,
Medigap plans, or Advantageplans?
Mike (00:31):
So I've got my opinion, but what's your opinion? Because
you are the director of healthcare.
David (00:36):
I am. Yes.
Mike (00:36):
You're you're kinder than I am on these things, but I
mean, what's your take on this?
David (00:41):
There's no one answer that is correct that's gonna fit
for everybody. And I know you'vesaid this on this show about
finances.
Mike (00:50):
There's no such thing as a perfect investment product or
strategy.
David (00:53):
Yeah. That's right. There are lots of questions that we
would ask that would help usguide you.
Mike (00:57):
Here's the pattern I've noticed. I'm curious to get your
take on this. I know we talkabout this over and over
internally, but just forconversation sake, I have found
traditional Medicare on its ownis fine. It's not really good or
bad. It's just fine.
If you're healthy, it's great.If you're healthy and just want
maybe dental or extra things,the advantage plans can work.
(01:19):
But as long as you're healthyMhmm. If you're not healthy, or
you have maybe you didn't winthe lottery when it comes to
genetics, you've got a lot offamily history, a lot of heart
disease, a lot of potentialstrokes, or whatever it might
be. Yeah.
Medigap plans can hedge therisk. Insurance is not an
investment, but it'sunderstanding which risks you
wanna get rid of, and whichrisks you're okay taking. Yeah.
(01:41):
I mean, it's like, I don't wannago down a rabbit hole of
Affordable Care Act insurance orprivate insurance, you know,
before senior health carebenefits. But healthier people
that can take on more risk andmaybe want to reallocate their
funds to be used for other typesof insurance, Advantage might be
great, but for the unhealthy,I'd hate to be unhealthy going
to the hospital over and overagain on an Advantage plan.
(02:02):
That's my opinion. I mean,what's your take on this?
David (02:04):
Yeah. You're definitely gonna be subject to more out of
pocket costs with a lot ofAdvantage Plans because I mean,
they do have a maximum out ofpocket, but it's generally much
higher than if you had asupplement.
Mike (02:16):
But that doesn't cover everything.
David (02:17):
Yeah. It might not. You're subject to whatever the
plan will allow to be covered.Right? Yeah.
And so you don't ever reallyquite know exactly for sure what
that is either until you getthere.
Mike (02:28):
Health care costs continue to go up, which puts more
pressure on these plans. Yes.And so if you can afford it, and
you have less healthy heritage,or maybe you've experienced,
when you're 65 years old, youcannot be denied from a Medigap
plan or supplemental plan.Right?
David (02:46):
Yeah. So when you're initially going into Medicare at
65 or whenever your initialenrollment period is, It's a
guaranteed issue.
Mike (02:55):
Even at 70 years old, you're leaving private insurance
Yes. Retiring then, you can getin there.
David (02:59):
Right.
Mike (02:59):
Cannot be denied.
David (03:00):
That's exactly right. But if you've already been in
Medicare for a while and you'vehad Advantage and you wanna
switch to a supplement plan withoriginal Medicare, you'll be
subject to underwriting. That istrue. You gotta pass. Yeah.
You gotta pass. So that's gonnabe different for everybody. You
might have a health history ofbad stuff going on.
Mike (03:17):
So when you read those articles online, everyone should
do x y z, just know that's a badopinion. Agreed.
David (03:25):
And then there's the do you like a buffet one stop
shopping? Do you want all ofyour dental, and hearing, and
vision, and health care all inone package?
Mike (03:34):
Mhmm.
David (03:34):
Then probably an Advantage Plan will help you.
Could be not guaranteed, butcould be right for you.
Mike (03:40):
Yeah. And this gets tricky too, because if you travel Mhmm.
Not all Advantage Plans I don'tthink I can't think of a single
Advantage Plan that's gonnacover you overseas if you got
sick over there and had to comeback. And so there's a lot of
nuance when it comes to yourlifestyle expectations
David (03:54):
That's right. And your health care risks. If you are
traveling a lot, then originalMedicare with with a supplement
is better because there's nonetwork that you're tied to. You
can go anywhere that acceptsMedicare.
Mike (04:05):
Yeah. So there's a lot to consider. I think the takeaway
is which is better? What's yourhealth like? Yeah.
What's your family history like?There's a lot to consider here,
and let's not dive into thoseoversimplified, I guess,
opinions.
David (04:18):
Sure. I mean, also, what's your budget? Because you
will have to pay everybody paysthe same for Part b. Right?
Every person that's on Medicare,they pay that Part b premium.
Mike (04:28):
Yep. Part b is Medicare, not to be confused with plan
Yes. A b c d e f g x y.
David (04:33):
Exactly right. Yes. There's so many
Mike (04:36):
Plans are Medigap. Parts are Medicare.
David (04:39):
Yes. So when everybody pays that, no matter if you're
on Advantage or OriginalMedicare, everybody will pay
that that part b. And then ontop of that, if you're gonna do
a supplement plan, you have topay that premium. And then if
you want dental and health,like, all these premiums start
stacking up on top of eachother. And so if if you can
afford that and it gives you andit fits your lifestyle, then go
(04:59):
for it.
Mike (04:59):
But some couldn't you just go direct carrier? So like,
let's say you do a Medigap planor traditional Medicare Mhmm.
Doesn't cover dental, butcouldn't you just contact a
local dentist? I guess yourwife's a dentist. Yeah.
I mean, I think if you just wantyour basic checkups
David (05:15):
Mhmm.
Mike (05:16):
You could just pay cash. You could. And they're probably
happier to get cash than to dealwith insurance companies.
David (05:21):
Yes. Dental practices do have their own sort of standard
rates. Right? And they mighthave a discount for cash paying
people, then just skip theinsurance companies altogether,
which is easier, I can say fromexperience.
Mike (05:33):
And then you've got these other ministries.
David (05:36):
Mhmm.
Mike (05:36):
So this is not insurance, but something that can be
considered, because it's not apart of the question. They
probably didn't even know theyasked this question.
David (05:42):
Right.
Mike (05:43):
The one I'm thinking of is like health care ministries.
David (05:45):
Is it like Christian health care ministries?
Mike (05:47):
Yeah. Whatever that one is. It's not traditional health,
but like they we're notrepresenting them quite well
here, but they do they do dentaltoo and other things?
David (05:56):
I think, if I remember right, it could be just health.
I'm not sure about dental. Wecould look it up and put
something in the show notes.But, yeah, you're basically
paying cash to the health careprovider, and then you submit
your receipt to this group, andthey reimburse you, and there's
a formula.
Mike (06:11):
There's other out of the box ways that you can plan for
health care. Yeah. For dental,vision, and just other potential
needs. And it all comes down toa simple cash breakeven
analysis. Insurance is not aninvestment.
The more you pay, the more riskhas been transferred to the
(06:32):
insurance company. Yeah. Theodds are in their favor. That's
how it works. As Americans weregetting sicker earlier, and were
getting sicker longer than everbefore, because we keep living.
David (06:42):
Mhmm.
Mike (06:43):
So expect health care costs to continue to go up.
Yeah. But all that said, I Iwould invite people to do some
due diligence Yeah. And tofigure out what is right for you
and to try and work with someonethat maybe isn't on a
commission. You're not on acommission
David (06:58):
I'm not.
Mike (06:58):
Schedule when it comes to our health care.
David (07:00):
There is that danger, and we don't wanna cast a wide net
over all agents out there.They're all just pointing you
towards the plan that gives themthe greatest commission, but it
is a possibility. People
Mike (07:10):
Yes. Doing their best. Yes. But the commission may skew
it's not like more commission orless commission when it comes to
advantage plans. It's all thisit's all the standardized bit.
But it's either does it pay acommission or does it not pay a
commission? Yes. And that mayskew some things. Do your
research. Many people don't knowor realize that that could
exist.
(07:30):
That's all the time we've gotfor the show today. If you
enjoyed the show, considersubscribing to it wherever you
get your podcasts. Just searchfor how to retire on time.
Discover if your portfolio isbuilt to weather flat market
cycles or if you're missing taxminimization opportunities that
you may not even know exist.Explore strategies that may be
able to help you lower youroverall risk while potentially
(07:51):
increasing your overall growthand lifestyle flexibility.
This is not your ordinaryfinancial analysis. Learn more
about Your Wealth Analysis andwhat it could do for you
regardless of your age, asset,or target retirement date, go to
www.yourwealthanalysis.com todayto learn more and get started.
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