What is the primary purpose of core benefits in a Medigap policy?

The primary purpose of core benefits in a Medigap policy is to cover basic costs of Medicare services. Medigap, or Medicare Supplement Insurance, is designed specifically to fill in the gaps left by Original Medicare (Parts A and B) by covering expenses such as copayments, coinsurance, and deductibles that beneficiaries are responsible for.

This coverage is crucial as it helps reduce out-of-pocket costs for beneficiaries, providing them with more financial security regarding their healthcare expenses. Core benefits typically include coverage for hospital coinsurance, medical costs after Medicare benefits are used up, and the first three pints of blood needed for a medical procedure, among other essentials.

While the other options mention various benefits or services, they do not accurately reflect the fundamental role of Medigap core benefits. Medigap policies do not provide additional coverage for prescription drugs; that falls under Part D of Medicare. Discounts on healthcare services are not a primary function of Medigap policies, nor is it correct to say that they serve merely as a secondary insurance source since their purpose is to supplement Medicare by covering specific gaps.