South Carolina Life and Health Practice Exam

What is the purpose of a Medicare Supplement Policy?

1. To provide additional income

2. To fill in the gaps of Part A and Part B Medicare

3. To cover dental and vision costs

4. To offer long-term care coverage

The correct answer is: To fill in the gaps of Part A and Part B Medicare

A Medicare Supplement Policy, also known as Medigap, is specifically designed to complement original Medicare (Parts A and B) by covering many of the out-of-pocket costs that beneficiaries may incur. Medicare pays for a significant portion of healthcare expenses, but there are often deductibles, co-payments, and coinsurance amounts that beneficiaries are responsible for. The purpose of a Medicare Supplement Policy is to fill in these gaps, helping to reduce the financial burden on the insured for services that Medicare covers but does not fully pay for. This type of policy assists with costs such as hospital stays, skilled nursing facility care, hospice care, and some home health care, thus providing financial protection and peace of mind for those who are enrolled in Medicare. It is important to note that while a Medicare Supplement Policy can enhance coverage, it does not cover additional services such as long-term care, dental, or vision expenses, which are typically handled through separate insurance plans.