What is Medigap?

Medigap, also known as Medicare Supplement Insurance, is a type of private health insurance that is specifically designed to supplement Original Medicare (Parts A and B). It helps cover some of the out-of-pocket costs that Original Medicare does not pay, such as copayments, coinsurance, and deductibles. Medigap policies are sold by private companies, and they are standardized into different plans that offer various levels of coverage.

The primary purpose of Medigap is to provide additional financial protection for individuals who are enrolled in Medicare, ensuring that they have more comprehensive coverage for their healthcare needs. This is particularly important because, while Original Medicare covers a lot of healthcare services, it does not cover everything, leaving beneficiaries responsible for certain expenses.

In contrast, the other options describe different kinds of insurance or assistance programs that do not align with the unique function of Medigap. State-funded programs and government plans for low-income families have different objectives and are not specifically designed to supplement Medicare. Likewise, a program that provides dental coverage would address a specific area of health care that is separate from the comprehensive approach of Medigap for hospital and medical insurance costs.