Final answer:
Another name for Medicare supplement plans is Medigap. These plans assist with the healthcare costs not covered by original Medicare, such as copayments and deductibles. Medigap policies are offered by private companies to individuals enrolled in Medicare Parts A and B.
Step-by-step explanation:
Another name for Medicare supplement plans is Medigap. These plans are designed to help cover healthcare costs that are not fully covered by original Medicare, such as deductibles, copayments, and coinsurance. Medicare, established in 1965, is a federal health insurance program primarily for individuals who are 65 or older, as well as for some younger people with disabilities. The program consists of different parts, referred to as Part A, Part B, Medicare Advantage (Part C), and Part D, which facilitate coverage for hospital care, medical services, and prescription drugs, respectively.
Due to the gaps in Medicare coverage, such as not covering dental care, eyeglasses, and certain prescriptions, Medigap plans can be an important option for beneficiaries. These supplement plans are only available to people who already have Medicare Part A and Part B and do not work with Medicare Advantage Plans. A beneficiary can choose a Medigap policy from a private company to assist with costs that original Medicare doesn't cover.
Medicaid, distinct from Medicare, is another U.S. government-funded program which helps with medical costs for people with limited income and resources. It is notable that spending on Medicare is projected to grow significantly, necessitating a closer understanding of the program's structure and available supplements to address the needs of an aging population.