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A client is 67 years old and covered by Medicare Parts A and B. They are concerned about the gaps in coverage and want to purchase a supplemental policy. Which type of policy is specifically designed to fill these gaps?
- AMedicare Advantage (Part C)
- BLong-Term Care Insurance
- CMedicaid
- DMedicare Supplement (Medigap)
Show answer & explanationAnswer & explanation
Correct answer: D. Medicare Supplement (Medigap)
Medicare Supplement policies, also known as Medigap policies, are specifically designed to cover the 'gaps' in Original Medicare (Parts A and B), such as deductibles, copayments, and coinsurance amounts.
Why the other options are wrong
- A. Medicare Advantage (Part C) is an alternative to Original Medicare, offering a different way to receive benefits, not a supplement.
- B. Long-Term Care insurance covers services like nursing home care, which Medicare generally does not cover extensively, but it's not a direct supplement to address A and B gaps.
- C. Medicaid is a state and federal program for low-income individuals, not a Medicare supplement.
Medicare Supplement (Medigap)
Private health insurance policies that help pay for some of the health care costs that Original Medicare (Parts A and B) doesn't cover, such as copayments, coinsurance, and deductibles.
- Works with Original Medicare, not Medicare Advantage.
- Standardized plans (A-N) available.
- Must be purchased from a private insurer.
- Does not cover long-term care, vision, dental, hearing aids, or private-duty nursing.
Memory trick: Original Medicare has gaps; Medigap fills them. Advantage is a whole new plan.