What are private insurance plans that beneficiaries may purchase to cover unpaid amounts in Medicare coverage called?

The correct designation for private insurance plans that can help cover costs that Medicare does not is referred to as a Medigap plan. These plans are specifically designed to fill in the gaps in Original Medicare coverage, which includes Medicare Part A and Part B. Medigap policies assist with out-of-pocket expenses, such as copayments, coinsurance, and deductibles that beneficiaries would otherwise be responsible for.

Medigap plans are standardized and regulated by the federal government, ensuring that they offer a consistent set of benefits regardless of the insurance company that provides them. This allows beneficiaries to choose a plan that best fits their healthcare needs and budget, knowing they will receive a baseline level of coverage.

Other types of private insurance plans, such as Medicare Advantage, provide an alternative way for beneficiaries to receive their Medicare benefits but may encompass a broader network of services and additional coverage, often including prescription drugs. However, Medicare Advantage plans are distinct in that they generally do not serve to directly supplement Original Medicare costs in the same manner as Medigap plans.

In summary, Medigap plans specifically address the unpaid amounts in Medicare coverage, making this option the most accurate in the context of the question.