Certified Financial Consultant (CFC) Practice Exam

What are the core benefits found in Medicare supplement policies?

1. Basic hospital insurance only

2. All plans

3. Prescription drug coverage

4. Long-term care insurance

The correct answer is: All plans

Medicare supplement policies, also known as Medigap plans, are designed to cover the costs that are not fully paid by original Medicare. One of the core benefits of these policies is that they help fill the "gaps" in Medicare coverage, such as copayments, coinsurance, and deductibles. This additional coverage can significantly reduce out-of-pocket expenses for beneficiaries. When considering the benefits of all available Medigap plans, they generally offer a range of services including, but not limited to, coverage for hospital costs, skilled nursing facility care, and blood. Each specific plan may have a different array of benefits, but all aim to provide comprehensive support for various healthcare expenses that original Medicare does not cover entirely. While some options like prescription drug coverage are important, they are not typically included in Medigap policies, as standalone Medicare Part D plans cater specifically to that need. Similarly, basic hospital insurance and long-term care insurance are either components of other plans or separate services not covered by standard Medigap policies. Therefore, recognizing that all plans provide essential support for Medicare enrollees leads to the conclusion that the answer encompasses the full spectrum of benefits offered by these supplemental policies.