State RegulationsIL specificDifficulty 1/5
Which of the following best describes the purpose of a Medicare supplement policy sold in Illinois?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A Medicare supplement policy is designed to pay covered gaps in Medicare, such as deductibles, coinsurance, and other cost-sharing that Medicare itself does not cover. Illinois treats these products as a distinct category regulated by 215 ILCS 5/363 and 215 ILCS 5/363a, and the Illinois Department of Insurance consumer guidance emphasizes that the policy supplements Medicare rather than replacing it.
Why the other options are wrong
- A) A Medicare supplement does not replace Medicare Parts A and B; it works alongside the Medicare coverage the person already has.
- B) Medicare supplement policies are sold to Medicare beneficiaries generally, not as a plan reserved for federal employees.
- C) Paying Medicare's monthly premiums is not the role of a Medicare supplement policy; the policy covers gaps in Medicare's benefits.
Memory hook
Med supp plugs Medicare's holes — it supplements, never replaces.