Life & Health Insurance Exam (National Portion)Health InsuranceMedium
A client is enrolled in a Medicare Advantage plan (Part C). Which of the following statements about Medicare Advantage plans is TRUE?
- AThey replace Medicare Parts A and B, but beneficiaries must still pay the Part A premium.
- BThey only cover hospital stays and doctor visits, not other medical services.
- CThey are administered by private insurance companies approved by Medicare.
- DThey always require the beneficiary to also enroll in Medicare Part D for prescription drug coverage.
Show answer & explanationAnswer & explanation
Correct answer: C. They are administered by private insurance companies approved by Medicare.
Medicare Advantage plans (Part C) are offered by private insurance companies that contract with Medicare. These plans provide all the benefits of Original Medicare (Part A and Part B) and often include additional benefits like prescription drug coverage.
Why the other options are wrong
- A. They replace Parts A and B, and most beneficiaries do not pay a Part A premium if they worked enough, but they still pay the Part B premium to Medicare.
- B. MA plans cover all services of Original Medicare (A & B) and often more, not just hospital/doctor visits.
- D. Many Medicare Advantage plans (MA-PD) include Part D coverage, so a separate Part D enrollment is often not required.
Medicare Advantage (Part C)
A type of Medicare health plan offered by a private company that contracts with Medicare to provide all your Part A and Part B benefits, and often includes additional benefits.
- Administered by private insurance companies.
- Must cover all benefits of Original Medicare (Part A & B).
- Often include prescription drug coverage (MA-PD).
- May offer extra benefits like vision, hearing, dental.
- Beneficiaries still pay their Medicare Part B premium.
Memory trick: Part C is the 'Company' plan, combining A&B.