What is the main function of a Medicare supplement policy?

A Medicare supplement policy, commonly referred to as Medigap, is designed to cover the out-of-pocket expenses that Medicare does not pay. This includes costs such as copayments, coinsurance, and deductibles that beneficiaries might face when they receive medical care. These policies work alongside Original Medicare (Part A and Part B) to help fill in the financial gaps and ensure that individuals do not face high medical costs.

The primary purpose of a Medigap policy is to provide an additional layer of financial protection, enabling beneficiaries to manage their healthcare expenditures more effectively. As such, these policies do not cover long-term care services, prescription drugs, or provide income replacement, which sets them apart from other types of insurance products.