State RegulationsAZ specificDifficulty 2/5
Which statement correctly describes the division of responsibility for Medicare and Medicare supplement policies affecting Arizona residents?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Medicare is a federal program, and Arizona plays no role in administering it. Medicare supplement policies, however, are insurance products sold by private carriers, and Arizona insurance law — enforced by the Department of Insurance and Financial Institutions (DIFI) and its Director — governs their sale and the protections owed to Arizona policyholders.
Why the other options are wrong
- A) This reverses the roles; Medicare is federal, and the supplement policies are the products Arizona regulates.
- B) Medigap policies are insurance products subject to Arizona insurance law and DIFI oversight, not mere matters of private contract.
- C) The Director has no role in administering the federal Medicare program; the Director enforces Arizona's insurance laws.
Memory hook
Washington runs Medicare; DIFI runs the supplements.