What is the primary purpose of a Medicare Supplement Policy?

The primary purpose of a Medicare Supplement Policy is to fill in the gaps of Part A and Part B Medicare. Medicare, which consists of different parts, generally covers many healthcare services; however, it does not cover everything. For instance, there are deductibles, coinsurance, and copayments that beneficiaries may still be responsible for. A Medicare Supplement Policy, often referred to as Medigap, is designed specifically to help cover these out-of-pocket costs that Medicare does not pay for.

This additional coverage can significantly reduce a beneficiary's financial liability for healthcare expenses, making it easier for them to manage their healthcare costs. By filling in the coverage gaps, Medicare Supplement Policies enhance the overall benefits available to individuals enrolled in Medicare, ensuring they have a more comprehensive health coverage plan.

The other options, while related to healthcare coverage, do not accurately describe the primary role of a Medicare Supplement Policy. For example, these policies do not replace Medicare or offer prescription drug coverage directly, nor are they primarily intended for dental services.