Final answer:
Medigap policies are standardized by CMS and are sold through private insurance companies. These policies help cover additional costs not covered by Medicare, such as deductibles and coinsurance. It is important for consumers to compare Medigap policies due to varying premiums and benefits offered by private insurers.
Step-by-step explanation:
Medigap insurance policies are standardized by the Centers for Medicare and Medicaid Services (CMS), but are sold and administered through private insurance companies. These Medigap policies, also known as Medicare Supplement Insurance, help cover some of the health care costs that are not covered by Medicare, such as copayments, coinsurance, and deductibles.
Medigap plans are standardized in terms of the basic benefits they must provide. However, private insurance companies can offer different premium rates and some additional benefits, so it's important for beneficiaries to compare Medigap policies carefully before purchasing. Since these are supplementary plans, they work in tandem with the original Medicare Part A and Part B plans that provide coverage for people over 65, and they are designed to help manage out-of-pocket costs. As with any health insurance option, understanding the terms and benefits of each Medigap policy is crucial for consumers.