AHIP Practice Exam

What does Medicare Supplemental Insurance provide coverage for?

1. Only for Part A costs

2. Only for Part B costs

3. Part A and Part B cost sharing in Original Fee-for-Service Medicare

4. Coverage limited to preventive services only

The correct answer is: Part A and Part B cost sharing in Original Fee-for-Service Medicare

Medicare Supplemental Insurance, often referred to as Medigap, is designed to help cover the out-of-pocket costs that Original Medicare (Part A and Part B) does not pay. This includes cost-sharing elements such as deductibles, copayments, and coinsurance that beneficiaries might incur when they receive healthcare services covered by Medicare. As such, the correct answer signifies that Medigap policies provide support for both Part A and Part B cost-sharing, which is essential for reducing the financial burden on beneficiaries. These policies enhance the coverage that the standard Medicare program offers, ensuring that seniors have better access to necessary medical care without facing overwhelming costs. The other options fall short because they either limit the coverage to just one part of Medicare or misstate what Medigap is designed to do. For example, stating coverage is only for Part A or Part B ignores the comprehensive nature of Medigap plans, while suggesting limited coverage for preventive services does not align with the broader cost-sharing benefits provided by these supplemental policies.