Medicare is a healthcare program initiated by the US government back in 1965 under the government of then President Lyn Johnson. It is of the social welfare programs in the US targeted to provide health care assistance in the form of cash to individuals above 65 years of age, with disability and under 65 years old, and with a permanent kidney failure with no particular age in consideration. Funds for Medicare are sourced out from pay roll taxes and individual contributions as well.

The original program has two benefit packages as options- Medicare Part A and Part B. The Part A coverage as described in www medicare gov is meant for inpatient expenses and these include hospitalization fees, etc. On the other hand, Part B is meant to cover outpatient expenses such as consultation fees, physical therapists’ fees, etc.

Recently, however, two other coverage options- Medicare Part C and Part D- have been added to better address healthcare needs. When one chooses options A and B, out of the pocket expenses are inevitable as these options do not cover all expenses, they only cover a certain percentage of the total costs. As these options are relatively limited, individuals who are enrolled in these packages and benefits purchase Medigap Policy.

The Medigap policy is provided for by a third party healthcare provider in partnership with Medicare. The objective of the policy is to fill in the gaps in the Medicare benefits- thus, giving a more comprehensive coverage. With Medicare C, wider coverage is achieved so there is a high probability of lower of the pocket expenses. When one purchases Medicare C, there is no need to purchase the Medigap policy. Part D of the Medicare program is meant for long term care such as those services provided in nursing homes, etc.