Life & Health Insurance Exam (National Portion)Health InsuranceMedium
A 67-year-old client is enrolled in Medicare Part A and Part B. They are considering enrolling in a policy offered by a private insurance company that helps pay for out-of-pocket costs not covered by Original Medicare. What type of policy is the client considering?
- AMedicaid
- BMedicare Supplement (Medigap) policy
- CMedicare Advantage Plan (Part C)
- DLong-Term Care Insurance
Show answer & explanationAnswer & explanation
Correct answer: B. Medicare Supplement (Medigap) policy
Medicare Supplement (Medigap) policies are specifically designed to fill the 'gaps' in Original Medicare (Parts A and B) by covering deductibles, copayments, and coinsurance. Medicare Advantage replaces Original Medicare, while Medicaid is for low-income individuals, and Long-Term Care Insurance covers extended care needs.
Why the other options are wrong
- A. Medicaid is a state and federal program for low-income individuals, not a supplement to Medicare for general out-of-pocket costs.
- C. Medicare Advantage Plans (Part C) replace Original Medicare, they don't supplement it.
- D. Long-Term Care Insurance covers skilled nursing care, home health care, etc., not the deductibles and copayments of Original Medicare.
Medicare Supplement (Medigap)
Health insurance policies sold by private companies to fill 'gaps' in Original Medicare coverage, such as deductibles, copayments, and coinsurance.
- Works with Original Medicare (Parts A & B).
- Standardized plans (A-N).
- Private insurance companies offer them.
Memory trick: Medicare Gaps? Medigap Maps!