Certified Financial Consultant (CFC) Practice Exam

Which of the following statements about Medicare Advantage is accurate?

1. Medicare Advantage plans often require members to use specific doctors.

2. Medicare Advantage plans are usually free of monthly premiums.

3. Medicare Advantage plans cover only hospital services.

4. Medicare Advantage is only available to seniors over 75 years old.

The correct answer is: Medicare Advantage plans often require members to use specific doctors.

Medicare Advantage plans, also known as Medicare Part C, often operate with a network of healthcare providers, which may include specific doctors and hospitals that members are required to use for their care. This requirement is part of the plan design and helps the insurance companies manage costs and services provided to enrollees. By requiring members to use particular providers, Medicare Advantage plans can better coordinate care and negotiate rates, potentially leading to lower out-of-pocket costs for members who adhere to the network restrictions. The other options do not accurately reflect the characteristics of Medicare Advantage. While some plans may have low or no monthly premiums, many do charge a premium, and other costs such as copayments and deductibles may still apply. Additionally, Medicare Advantage plans are comprehensive and include coverage for a wide range of services beyond just hospital services, such as outpatient care, prescription drugs, and preventive services. Lastly, access to Medicare Advantage is available not only to seniors over 75 but generally to anyone eligible for Medicare, which includes those 65 and older as well as certain younger individuals with disabilities or specific health conditions.