Final answer:
True, Medicare Supplement Policies were designed as secondary insurance for beneficiaries with original Medicare, covering additional out-of-pocket expenses. These policies complement the coverage provided by Medicare Parts A and B, addressing the gaps in coverage and helping beneficiaries manage healthcare costs more effectively.
Step-by-step explanation:
True, a Medicare Supplement Policy, also known as Medigap, was indeed designed to serve as secondary insurance coverage for beneficiaries enrolled in the original or traditional Medicare program. These policies help pay for out-of-pocket costs that are not covered by Medicare Parts A and B, such as copayments, coinsurance, and deductibles. While the Medicare Prescription Drug and Modernization Act of 2003 introduced Part D for prescription drug benefits and aimed to provide additional help, Medicare Supplement plans offer complementary coverage that fills in the 'gaps' of the original Medicare program.
Medicare, created as part of the Social Security Act in 1965, has been a valuable health insurance program for Americans over the age of 65, as well as for younger individuals with certain disabilities. The expansion of Medicare has included different parts to cover specific needs, including hospital insurance (Part A), medical insurance (Part B), the Medicare Advantage Plan (Part C), and the prescription drug benefit (Part D). Medicare plays a crucial role in ensuring that seniors and vulnerable populations have access to necessary health care services without the overwhelming financial burden that private health insurance might impose on them in their retirement years.