Which statement best describes Medicare Supplement Plans?

Which statement best describes Medicare Supplement Plans?

• A. They are state regulated and sold by private insurers.
• B. They replace Medicare Part A and B.
• C. They include drug coverage within the plan.
• D. They have no underwriting.

Answer: (A)

Medicare Supplement Plans, also called Medigap, are private insurance policies that help pay for costs not covered by Medicare Part A and Part B. The defining point is that these plans are regulated by each state and sold by private insurers, which is why the statement about state regulation and private enrollment is the best description. They don’t replace Medicare; you still keep Part A and Part B and pay the associated premiums, plus the Medigap premium. They also don’t include drug coverage within the plan, so to get prescription coverage you’d need a separate Part D plan. And underwriting isn’t universally waived—most Medigap plans require medical underwriting, with certain enrollment periods offering guaranteed issue rights.

Medicare Supplement Plans, also called Medigap, are private insurance policies that help pay for costs not covered by Medicare Part A and Part B. The defining point is that these plans are regulated by each state and sold by private insurers, which is why the statement about state regulation and private enrollment is the best description.

They don’t replace Medicare; you still keep Part A and Part B and pay the associated premiums, plus the Medigap premium. They also don’t include drug coverage within the plan, so to get prescription coverage you’d need a separate Part D plan. And underwriting isn’t universally waived—most Medigap plans require medical underwriting, with certain enrollment periods offering guaranteed issue rights.