What is the main purpose of Medigap policies?

The main purpose of Medigap policies is to cover out-of-pocket costs not covered by Medicare. Medigap, or Medicare Supplement Insurance, is specifically designed to fill the gaps left by Medicare coverage. This includes expenses such as copayments, coinsurance, and deductibles related to Medicare-approved services.

Medigap plans are standardized and can provide substantial financial protection by offering coverage for various out-of-pocket costs that beneficiaries may incur while receiving Medicare services. This support is crucial, as Medicare alone may not cover the full range of medical expenses, leaving beneficiaries with potentially significant out-of-pocket costs.

While prescription drug coverage, vision and dental insurance, and long-term care insurance are important aspects of healthcare, they fall outside the scope of what Medigap policies are intended to provide. Medigap does not include prescription drug coverage (that would be covered by Medicare Part D), nor does it address vision, dental care, or long-term care, which are often managed through separate insurance policies or plans.