Which medical costs are typically covered by Medigap plans?

Medigap plans, also known as Medicare Supplement Insurance, are designed to fill the gaps left by Original Medicare, which is comprised of Part A (hospital insurance) and Part B (medical insurance). One of the primary areas that Medigap plans cover is out-of-pocket costs associated with Medicare, which includes coinsurances and copayments.

Coinsurance refers to the percentage of costs that a beneficiary must pay after Medicare has paid its share. For example, in many cases, Medicare may cover 80% of the service cost, leaving the patient to cover the remaining 20%. Copayments are fixed amounts that the insured pays for covered services at the time of receiving them. Medigap plans help cover these expenses, thereby reducing the overall financial burden on beneficiaries.

In contrast, long-term care expenses are not covered by Medigap plans. Additionally, Medigap does not cover outpatient services exclusively, as it is designed to complement both inpatient and outpatient Medicare services. Health and wellness programs, while beneficial, are generally not included in the Medigap coverage, which focuses primarily on medical costs directly associated with Medicare services.