What happens if a consumer has both Medicare and a Medigap policy?

When a consumer has both Medicare and a Medigap policy, the correct understanding is that the Medigap policy is designed to complement Medicare by helping to cover certain out-of-pocket costs that Medicare does not fully pay. This can include copayments, coinsurance, and deductibles. Medigap policies are standardized and provide a range of benefits, allowing the insured to manage their medical expenses more effectively alongside their Medicare coverage.

Having a Medigap policy does not replace Medicare; rather, it works in conjunction with it to enhance the consumer's overall healthcare coverage. Therefore, the presence of a Medigap policy provides additional financial protection, which makes this option the most accurate in describing the relationship between the two forms of coverage.