Life & Health Insurance Exam (National Portion)Health InsuranceMedium
A 70-year-old client is enrolled in Medicare Part A and Part B. They are concerned about the gaps in coverage, such as deductibles and coinsurance, and want to purchase a policy specifically designed to cover these out-of-pocket costs. Which type of policy should they consider?
- ALong-Term Care Insurance
- BMedicaid
- CMedicare Supplement (Medigap)
- DMedicare Advantage (Part C)
Show answer & explanationAnswer & explanation
Correct answer: C. Medicare Supplement (Medigap)
Medicare Supplement policies, also known as Medigap, are designed to fill the 'gaps' in Original Medicare (Parts A and B) by covering deductibles, coinsurance, and copayments that Original Medicare does not fully cover.
Why the other options are wrong
- A. Long-Term Care insurance covers services for chronic illnesses or disabilities, not Medicare gaps.
- B. Medicaid is a state and federal program for low-income individuals, not a supplement to Medicare.
- D. Medicare Advantage plans replace Original Medicare, they don't supplement it.
Medicare Supplement (Medigap)
A private health insurance policy sold to supplement Original Medicare (Parts A and B) by covering some of the healthcare costs that Original Medicare doesn't, such as copayments, coinsurance, and deductibles.
- Works with Original Medicare, not Medicare Advantage.
- Standardized plans (e.g., Plan A, B, C, D, F, G, K, L, M, N) across states.
- Helps reduce out-of-pocket expenses for Medicare beneficiaries.
Memory trick: Medigap 'fills the gap' in Original Medicare.