Medigap is best described as:

• A. Supplemental insurance that helps pay Medicare costs like copays and deductibles.
• B. A private plan that covers prescription drugs.
• C. A program that reduces hospital payments for readmissions.
• D. A tax measure that increased penalties.

Answer: (A)

Medigap is supplemental insurance sold by private companies that helps cover the out-of-pocket costs that Original Medicare doesn’t fully pay, such as copays, coinsurance, and deductibles. It works alongside Medicare Part A and Part B to reduce the gaps in coverage you’d face with Original Medicare, though it does not include prescription drug coverage (that’s handled by a standalone Part D plan or a Medicare Advantage plan with drug coverage). The other options describe entirely different programs or purposes: prescription drugs are covered by Part D, hospital readmission penalties are part of a separate Medicare policy, and tax penalties relate to taxes, not to Medigap.