What is the primary purpose of a Medigap plan?

The primary purpose of a Medigap plan is to cover gaps in Medicare coverage. Medigap, or Medicare Supplement Insurance, is specifically designed to assist beneficiaries in paying for out-of-pocket costs that Medicare does not fully cover, such as deductibles, copayments, and coinsurance. This helps to alleviate some of the financial burdens associated with healthcare under Original Medicare, enabling beneficiaries to receive necessary medical services without facing exorbitant costs.

Medigap plans are standardized and regulated, ensuring that they offer specific benefits that fill the discrepancies left by Medicare, rather than provide comprehensive coverage that includes every possible medical expense. It's also important to note that while Medigap can significantly reduce out-of-pocket expenses, it does not eliminate costs entirely, which distinguishes its role from options focused on providing unrestricted or unlimited coverage.