Which statement is true about Medicare supplement insurance plans?

The statement regarding plan benefit amounts automatically updating with Medicare changes accurately reflects a key feature of Medicare supplement insurance plans, also known as Medigap policies. These plans are designed to fill in the gaps of coverage that Original Medicare does not pay for, such as copayments, coinsurance, and deductibles.

As Medicare adjusts its benefits and costs — which can include changes in deductibles, copayments, and coinsurance amounts — many Medicare supplement plans also adjust their coverage accordingly to offer consistent, complementary support to the insured individual. This means that if there are changes in Medicare regulations or benefit amounts, the terms and benefits of certain Medigap policies are updated to ensure continued alignment with those changes. This automatic updating helps beneficiaries maintain adequate coverage without requiring them to constantly monitor and adjust their insurance plans.

The other statements do not accurately capture the true nature of Medicare supplement insurance. They are not exclusively for seniors since Medicare itself is available to younger individuals with disabilities. Additionally, while some Medigap plans may cover a limited range of services, they do not specifically cover only prescription drugs — those would be covered under Medicare Part D. Lastly, while Medigap plans reduce out-of-pocket costs, they typically do involve some form of cost sharing