What is the primary purpose of Medicare supplement policies?

Medicare supplement policies, often referred to as Medigap plans, are designed specifically to fill the gaps in coverage that Medicare leaves behind. This primarily includes out-of-pocket expenses such as deductibles, copayments, and coinsurance associated with hospital, medical, and surgical costs that are covered by Medicare.

Medicare itself provides essential health coverage for individuals aged 65 and older, but it does not cover all healthcare expenses. For instance, Medicare may pay for a portion of a hospital bill, but the beneficiary may still be responsible for a deductible and a percentage of the remaining costs. A Medicare supplement policy helps to alleviate that financial burden by covering these additional costs, ensuring that beneficiaries have more comprehensive health coverage without unexpected out-of-pocket expenses.

The other options focus on different types of insurance needs. Options related to disability income, long-term care expenses, and life insurance coverage cater to various insurance products that do not overlap with the primary function of Medicare supplement policies, which is strictly to complement Medicare coverage rather than to serve as a source of income or to cover types of services outside of those provided by Medicare.