Medicare was created to offset the most pressing medical expenses by providing a basic foundation of health benefits. Medicare was never designed to pay 100% of an individual's medical bills.
Medicare Supplement (Medigap) Policies
While Medicare pays a significant portion of a beneficiary's medical bills, Medicare does not cover all health care related services that may be needed. Private Insurance companies sell policies which cover some of the out-of-pocket costs for beneficiaries enrolled in both Parts A & B of Medicare. These policies are referred to as "Medicare supplement" or "Medigap" policies which provide coverage to fill the "gaps" left after Medicare covers its share. Medicare Supplement or Medigap policies pay secondary to (after) Medicare Parts A and B.
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