Texas General Lines — Life, Accident, Health and HMOHealth InsuranceMedium
A client is 68 years old and has chosen a Medicare Advantage Plan (Part C). Which of the following statements about their coverage is TRUE?
- AThey can also purchase a Medigap policy to supplement their Medicare Advantage Plan.
- BTheir Medicare Advantage Plan replaces their Original Medicare (Parts A and B).
- CThey must also enroll in Medicare Part D for prescription drug coverage.
- DThey will have no out-of-pocket costs with a Medicare Advantage Plan.
Show answer & explanationAnswer & explanation
Correct answer: B. Their Medicare Advantage Plan replaces their Original Medicare (Parts A and B).
Medicare Advantage Plans (Part C) are offered by private companies approved by Medicare and essentially replace Original Medicare, providing all Part A and Part B benefits, and often Part D as well.
Why the other options are wrong
- A. It is illegal to sell a Medigap policy to someone who has a Medicare Advantage Plan.
- C. Many Medicare Advantage Plans include prescription drug coverage (Part D) as part of the plan.
- D. Medicare Advantage Plans typically have cost-sharing such as deductibles, copayments, and coinsurance.
Medicare Advantage (Part C)
Medicare health plans offered by private companies that contract with Medicare to provide Part A and Part B benefits.
- Replaces Original Medicare (Parts A & B)
- Often includes prescription drug coverage (Part D)
- May offer additional benefits like vision, dental, hearing
Memory trick: Part C 'C'overs A and B, 'C'ombining them into one.