South Carolina Life and Health Practice Exam

Which gap in Medicare coverage does Medicare Supplemental Insurance address?

1. Outpatient services

2. Medicare in-hospital deductible

3. Prescription drugs

4. Routine physicals

The correct answer is: Medicare in-hospital deductible

Medicare Supplemental Insurance, commonly known as Medigap, is designed to fill the gaps in coverage that Original Medicare (Part A and Part B) does not fully cover. One significant area that Medigap addresses is the Medicare in-hospital deductible, which refers to the amount beneficiaries must pay out-of-pocket before Medicare begins to cover hospital expenses under Part A. When a beneficiary is admitted to the hospital, they are required to meet a deductible, which can be a substantial financial burden. Medigap policies help to pay for this deductible, along with other out-of-pocket costs such as co-payments and coinsurance, making it a vital financial tool for those with Medicare. In contrast, outpatient services, prescription drugs, and routine physical exams are typically either covered under different Medicare plans or have other dedicated solutions. For instance, Medicare Part D is specifically designed for prescription drug coverage, while routine physicals may be part of Part B, and outpatient services fall under the original Medicare coverage. Therefore, the correct identification of the Medicare in-hospital deductible being addressed by Medigap highlights the importance of this supplemental insurance in managing out-of-pocket expenses for hospital stays.