What does the term "Medigap" refer to?

The term "Medigap" refers specifically to a supplemental insurance policy designed to fill the coverage gaps in Original Medicare. These gaps can include out-of-pocket costs such as copayments, coinsurance, and deductibles. Medigap policies are offered by private insurance companies and are meant to help individuals manage the costs associated with their healthcare while on Medicare.

Unlike a government program for the elderly or a service for Medicaid recipients, which cater to different aspects of health coverage, Medigap policies are specifically tied to Medicare. They enhance the benefits received from Medicare rather than serve as a standalone Medicare plan. Therefore, understanding that Medigap serves as an additional layer of insurance to help cover costs beyond what Medicare provides clarifies why it is classified as a supplemental insurance policy.