What type of plan is Medigap considered?

Medigap, also known as Medicare Supplement Insurance, is considered an individually owned and state-regulated supplement plan. This type of insurance is designed to cover the gaps in coverage provided by Original Medicare (Parts A and B), helping with expenses like copayments, coinsurance, and deductibles. Each Medigap policy is sold by private insurance companies, and although it is regulated by the states, the federal government also establishes certain standards for these policies.

The key factor in Medigap's classification as an individually owned product is that it is purchased directly by individuals to complement their Medicare coverage, as opposed to being obtained through a group or employer. State regulation ensures that these policies adhere to specific guidelines, providing consumer protections and standardized benefits. This distinguishes Medigap plans from other health insurance arrangements, making "individually owned and state regulated" the accurate description.