Final answer:
A Medigap insurance policy is specifically designed to cover Medicare-approved charges not covered by Medicare, such as copayments, coinsurance, and deductibles. Medigap does not cover long-term care, costs for low-income individuals, or charges over Medicare's allowed amounts.
Step-by-step explanation:
A Medigap insurance policy is designed to cover Medicare-approved charges not paid by Medicare (c), also known as the 'gaps' in Medicare coverage. Medigap policies help pay for some health care costs that Original Medicare does not cover, such as copayments, coinsurance, and deductibles. These policies are offered by private companies and can also provide coverage for services that Medicare does not cover at all, like medical care when you travel outside the U.S.
Medicare itself is part of a broader spectrum of health insurance programs provided by the U.S. government to assist various groups, including the elderly, low-income individuals, military veterans, and children in low-income families. It's important to note that Medigap policies do not extend to long-term care expenses, health care costs incurred by low-income individuals (which are typically covered by Medicaid), or charges that exceed allowed amounts by Medicare. Instead, Medigap specifically targets those uncovered portions of healthcare expenses that fall within the purview of Medicare's approval but are not paid out by the program.