What is the primary purpose of Medigap insurance?

The primary purpose of Medigap insurance is to supplement Medicare benefits. Medigap plans are designed to fill in the gaps in coverage that Medicare does not fully address. This includes areas such as copayments, coinsurance, and deductibles that a beneficiary may still be responsible for after Medicare coverage has been applied. By providing this supplemental coverage, Medigap insurance helps to reduce out-of-pocket expenses for individuals who are enrolled in Medicare.

It is important to note that Medigap plans work alongside original Medicare (Parts A and B) but do not replace it, which distinguishes them from options that might suggest they provide free healthcare services or lower overall health care costs. Instead, Medigap policies are paid for by the insured, making it a supplementary expense rather than a replacement for Medicare coverage.