What does the term "medigap" refer to in health insurance?

The term "medigap" specifically refers to supplemental insurance designed to cover certain costs not fully paid by Medicare for its beneficiaries. This insurance helps bridge the gaps in coverage that Medicare may leave, such as copayments, coinsurance, and deductibles. Medigap policies are typically sold by private insurance companies and are intended for individuals who are enrolled in Medicare and want additional coverage to help manage out-of-pocket expenses.

This supplemental nature is what distinguishes medigap from options that might provide more basic health insurance or government-funded programs, as those typically have different structures and coverage objectives. Knowing this helps clarify how medigap serves its purpose in the context of the broader Medicare system and why it is a vital component for many seniors looking to maintain comprehensive health coverage.