This comparison evaluates a $0 premium Medicare Advantage (MA) plan with additional Hospital Indemnity insurance versus a Medicare Supplement Plan N with separate dental and vision coverage. We’ll assess:
- Coverage differences
- Out-of-pocket costs
- Total expenses over 10 years
Option 1: Medicare Advantage Plan + Hospital Indemnity
- Monthly Premium: $0 (Medicare Advantage) + $60 (Hospital Indemnity)
- Includes:
- Dental, Vision, Hearing
- $40/month over-the-counter (OTC) benefit
- $0 PCP visit copay
- $50 Specialist visit copay
- $300 per hospital admission copay
- Hospital Indemnity Plan covers $300 per hospital stay, eliminating hospitalisation costs.
Annual Costs for Medicare Advantage + Hospital Indemnity:
- Monthly Premiums: $60 x 12 = $720
- PCP Visits (5 per year at $0 copay): $0
- Specialist Visits (5 per year at $50 copay): $50 x 5 = $250
- Hospitalization (2 stays per year, covered by indemnity): $0
- TOTAL ANNUAL COST: $970
Total Cost Over 10 Years:
$970 x 10 = $9,700
Option 2: Medicare Supplement Plan N + Dental & Vision Insurance
- Monthly Premiums:
- Plan N: $120
- Dental Insurance: $45
- Vision Insurance: $20
- Includes:
- No network restrictions (see any doctor who accepts Medicare)
- Covers most out-of-pocket costs except copays & excess charges
- $20 copay for doctor visits
- $50 copay for emergency room visits (waived if admitted)
- No coverage for Part B excess charges
Annual Costs for Plan N + Dental & Vision:
- Monthly Premiums: ($120 + $45 + $20) x 12 = $2,220
- PCP Visits (5 per year at $20 copay): $20 x 5 = $100
- Specialist Visits (5 per year at $20 copay): $20 x 5 = $100
- Hospitalization (2 stays per year, no cost with Plan N): $0
- Part B Deductible: $240
- TOTAL ANNUAL COST: $2,660
Total Cost Over 10 Years:
$2,660 x 10 = $26,600
Side-by-Side Cost Comparison (10-Year Period)
| Plan Type | Medicare Advantage + Indemnity | Medicare Supplement Plan N + Dental & Vision |
| Monthly Premium | $60 | $185 |
| Annual Premium Cost | $720 | $2,220 |
| Doctor Visits (PCP & Specialist Copays) | $250 | $200 |
| Hospitalization Costs | $0 (covered by Indemnity) | $0 |
| Part B Deductible | N/A (covered in MA plan) | $240 |
| Total Annual Cost | $970 | $2,660 |
| Total 10-Year Cost | $9,700 | $26,600 |
Key Takeaways: Which Option Is Better?
Medicare Advantage + Hospital Indemnity Plan
✅ Lower overall cost – Saves $16,900 over 10 years
✅ Includes dental, vision, and hearing with no extra cost
✅ Hospital indemnity plan eliminates inpatient copays
✅ $40/month OTC allowance provides extra savings
❌ Requires using a provider network (HMO or PPO limitations)
❌ Higher copays for specialists & potential prior authorizations
Medicare Supplement Plan N + Dental & Vision
✅ No provider network – see any doctor who accepts Medicare
✅ Predictable out-of-pocket costs with no major surprises
✅ No prior authorisation required for services
❌ Higher premiums ($16,900 more over 10 years)
❌ No coverage for Part B excess charges
Which Plan Offers the Best Value?
- If you want the lowest cost and extra benefits (dental, vision, OTC allowance) → Medicare Advantage + Hospital Indemnity is the better choice.
- If you prefer to see any doctor without restrictions and are okay with higher premiums → Plan N is a strong choice.
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