Certified Financial Consultant (CFC) Practice Exam

Which of the following statements is NOT correct regarding Medicare?

1. Medicare Advantage must be provided through HMOs.

2. Medicare covers all types of long-term care.

3. Medicare includes hospital and outpatient care.

4. Medicare is a federal health insurance program.

The correct answer is: Medicare covers all types of long-term care.

The statement regarding Medicare that is not correct is that it covers all types of long-term care. Medicare does provide certain benefits for specific short-term skilled nursing facility care or rehabilitation services, but it does not cover most long-term care services, such as custodial care in nursing homes or assisted living facilities. Long-term care is most often funded through other means, such as Medicaid or private insurance. Medicare does indeed include hospital and outpatient care through its various parts, such as Part A (hospital insurance) and Part B (medical insurance), detailing how such services are covered. Additionally, Medicare is a federal health insurance program primarily for individuals aged 65 and older, as well as certain younger individuals with disabilities, making it essential for understanding the structure of U.S. healthcare. While Medicare Advantage plans can include managed care approaches, the statement that they must be provided through HMOs is misleading because Medicare Advantage plans can also be provided through other types of plans, including PPOs and private fee-for-service plans, giving beneficiaries more options for their healthcare coverage.