Georgia Navigator Practice Exam

What is Medigap designed to cover?

1. The total cost of medical treatments

2. Expenses outside of Medicare payment

3. Emergency medical situations only

4. Prescription drug costs

The correct answer is: Expenses outside of Medicare payment

Medigap, also known as Medicare Supplement Insurance, is specifically designed to fill the gaps in Medicare coverage. Medicare has several out-of-pocket costs, such as deductibles, coinsurance, and copayments. Medigap policies help cover these expenses that are not fully paid for by Medicare, thus reducing the financial burden on beneficiaries. This means that people who have Medicare can use Medigap policies to pay for some of the costs that Medicare doesn’t cover, which can significantly help in managing their overall healthcare costs. Medigap is not intended to cover all costs associated with medical treatment, only those that are outside the scope of what Medicare pays. The other options represent aspects of coverage that are not captured by Medigap. It does not cover emergency medical situations exclusively or provide coverage for prescription drug costs, as these are different areas of insurance needs typically addressed by different policies or plans.