Who issues Medicare Supplement policies?

Medicare Supplement policies, also known as Medigap plans, are issued by private insurance companies. These policies are designed to help cover some of the healthcare costs that original Medicare does not fully pay for, such as copayments, coinsurance, and deductibles.

The involvement of private insurance companies is crucial because it allows for a broader range of choices and plans to meet diverse consumer needs. Each private insurer can offer standardized Medigap plans, which makes it easier for Medicare beneficiaries to compare coverage options and find a plan that fits their individual circumstances.

While the federal government regulates Medigap policies and establishes certain standards to ensure consumers are protected, it does not issue these policies directly. Similarly, state governments may have rules regarding how these policies are sold and marketed but do not issue them themselves. Medicare serves as the federal health insurance program for individuals aged 65 and over, and while it provides basic health coverage, it does not provide supplemental insurance options directly. Instead, it is through private insurance companies that beneficiaries can obtain additional coverage to complement their Medicare benefits.