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

When a consumer has both Medicare and a Medigap policy, the Medigap policy is designed to complement Medicare coverage. It helps pay for certain out-of-pocket costs that Medicare doesn't fully cover, such as copayments, coinsurance, and deductibles. This means that while Medicare provides the core health insurance coverage, Medigap fills in the gaps, allowing for more comprehensive financial protection against healthcare costs.

Having both is beneficial as it reduces the financial burden of medical expenses. Medigap policies operate on the premise that they enhance Medicare benefits rather than replace them. This complementary relationship ensures that the consumer has access to a wider array of healthcare services without incurring excessive out-of-pocket expenses. Thus, the correct understanding lies in recognizing that the main function of Medigap is to support and extend the coverage provided by Medicare.