State RegulationsCO specificDifficulty 2/5
A producer tells a Colorado client that a Medicare supplement policy and a Medicare Advantage plan are simply two names for the same product. Which correction is accurate?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Colorado law, a Medicare supplement policy is defined coverage sold to Medicare enrollees to supplement Medicare benefits (C.R.S. § 10-18-101(4); Colorado Insurance Regulation 4-3-1). A Medicare Advantage plan is a distinct vehicle of the federal program through which a private plan delivers Medicare benefits. Colorado's supplement statutes apply to the gap-filling product, so conflating the two misdescribes what the client is buying.
Why the other options are wrong
- A) That reverses the roles; it is the supplement that fills gaps, while an Advantage plan delivers Medicare benefits through a private plan.
- C) Both products are defined by their relationship to Medicare; neither is a generic accident policy detached from the federal program.
- D) The supplement is sold to Medicare enrollees generally, not only to persons already enrolled in an Advantage plan.
Memory hook
Supplement sits on top of Medicare; Advantage replaces the original — never the same thing.