What is the purpose of Medicare Supplement Insurance?

Medicare Supplement Insurance, often referred to as Medigap, is specifically designed to cover the out-of-pocket costs that Original Medicare does not pay for. These costs can include deductibles, copayments, and coinsurance, among others. Medicare itself provides limited coverage, and many beneficiaries find that they face significant expenses that are not fully covered.

By having a Medicare Supplement plan, individuals can reduce their financial burden related to these additional costs, allowing them to focus on their health needs without worrying as much about their healthcare expenses. This insurance essentially fills the gaps left by Original Medicare, making it easier for beneficiaries to manage their healthcare costs.

Other options like covering long-term care expenses, providing tax benefits, or replacing Medicare coverage entirely do not align with the primary purpose of Medigap. These aspects lie outside the core function of Medicare Supplement Insurance, which remains centered on supplementing the financial responsibilities associated with Original Medicare.