What is the purpose of Medigap insurance?

Medigap insurance is specifically designed to fill the gaps in coverage that Medicare does not fully address, particularly concerning out-of-pocket expenses. After Medicare pays its share of approved services, there are often costs that beneficiaries are still responsible for, including deductibles, copayments, and coinsurance. Medigap policies provide coverage for these costs, enabling beneficiaries to manage their healthcare expenses more effectively.

Unlike Medicare Advantage plans, which might offer a different set of benefits and coverage, Medigap strictly supplements the existing Medicare coverage. This is crucial for individuals who have incurred significant medical expenses and need a safety net for the costs that Medicare does not cover. While other options may suggest that Medigap replaces Medicare or offers additional services like dental and vision benefits, its primary function remains focused on enhancing the financial protection that Medicare provides against health-related costs.