What is the fundamental purpose of Medicare Supplement policies?

The fundamental purpose of Medicare Supplement policies, also known as Medigap plans, is to cover medical costs that are not payable under Medicare. These policies are designed to help fill the "gaps" in coverage that Medicare may leave, such as copayments, coinsurance, and deductibles. Medicare provides basic health insurance for individuals aged 65 and over, as well as certain younger people with disabilities, but it does not cover all expenses.

Medicare Supplement plans help alleviate out-of-pocket costs that beneficiaries would otherwise be responsible for. Since Medicare has cost-sharing requirements, many beneficiaries find it beneficial to have supplementary coverage to help manage their medical expenses more effectively.

The other options relate to areas that are outside the scope of what Medicare Supplement policies cover. For example, long-term care is typically addressed by separate long-term care insurance policies and is not included under Medicare or Medigap plans. Similarly, while disability insurance provides income replacement in the event of injury or illness that prevents working, it is distinct from the medical cost coverage offered by Medicare Supplements. Vision and dental coverage usually require additional, separate policies as well, as these services are generally not covered by traditional Medicare or Medigap plans.