Shirley has a Medigap policy, which is designed to pay costs associated with...

A Medigap policy, also known as Medicare Supplement Insurance, is specifically designed to help cover certain out-of-pocket costs that Medicare does not pay for under Parts A and B. These costs can include coinsurance, copayments, and deductibles associated with hospital and medical services. Medigap policies are meant to provide additional financial support to individuals who are already enrolled in Medicare, thereby helping to reduce their overall medical expenses.

The significance of the correct answer lies in understanding that Medigap is not applicable to Medicare Part C, which is the Medicare Advantage plan, nor does it provide coverage for Medicaid, which is a separate program aiding those with low income. Because Medigap policies are focused on supplementing the original Medicare framework, they are exclusively tied to Parts A and B.