What does the term "Medigap" refer to?

The term "Medigap" refers to insurance policies that are specifically designed to cover costs not covered by Original Medicare, which consists of Part A (hospital insurance) and Part B (medical insurance). These additional costs can include deductibles, copayments, and coinsurance, which can add up quickly for beneficiaries. Medigap policies help fill these financial gaps, ensuring that individuals have greater peace of mind regarding their out-of-pocket healthcare expenses.

Medigap policies are standardized and regulated by state and federal laws, meaning that they must provide a certain set of benefits regardless of the insurance company offering them. This allows consumers to compare plans more easily and choose one that best fits their healthcare needs and budget.

The other options refer to different types of insurance. For example, supplemental policies for prescription drugs fall under Medicare Part D and are not the same as Medigap. Life insurance policies and long-term care insurance serve different functions and do not pertain to the Medigap concept. Therefore, the correct understanding of Medigap as a resource for covering costs outside of what Original Medicare offers is essential for beneficiaries navigating their healthcare options.