Medigap
Medigap, also known as Medicare Supplement Insurance, is additional insurance purchased by individuals enrolled in Medicare to help cover healthcare costs that Medicare doesn't pay for, such as copayments, coinsurance, and deductibles.
Example #1
For instance, if Medicare covers 80% of a doctor's visit, Medigap may help pay for some or all of the remaining 20%.
Example #2
Another example is if Medicare Part A deductible is $1,484 per benefit period in 2021, Medigap can help cover this cost.
Misuse
An example of misuse of Medigap could be a deceptive sales practice where an insurance agent misleads a consumer by selling them duplicate coverage under the guise of Medigap. Protecting against misuse is crucial to ensure that consumers are well-informed, receive the coverage they need, and avoid unnecessary expenses.
Benefits
One significant benefit of Medigap is that it provides financial security and peace of mind to Medicare beneficiaries by reducing out-of-pocket expenses. For example, if an individual has a chronic illness requiring frequent medical visits, Medigap can help manage the high costs associated with healthcare.
Conclusion
Understanding and utilizing Medigap can significantly enhance the financial well-being and health care coverage of Medicare beneficiaries. It serves as a valuable resource in mitigating the gaps and costs left by original Medicare coverage.
Related Terms
MedicareInsuranceCopaymentCoinsuranceDeductible