State RegulationsMI specificDifficulty 2/5
A Detroit policyholder becomes entitled to Medicaid and asks her Medicare supplement insurer what options she has. Under Michigan law, the insurer:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3819(3) requires Medicare supplement policies to suspend payment of benefits and premiums for up to 24 months at the request of a Medicaid-entitled policyholder. The insurer must give 90-day notice both when coverage is suspended on entitlement and before coverage resumes after entitlement is lost. This protects low-income beneficiaries from paying duplicate premiums they cannot afford.
Why the other options are wrong
- A) The policy is suspended, not canceled — M.C.L. 500.3819(3) preserves the coverage for resumption.
- B) Duplicate payment by both programs is not required; suspension of benefits and premiums is the statutory mechanism.
- D) The suspension can run up to 24 months, and the 90-day notices are mandatory, not optional.
Memory hook
Medicaid = suspend premiums and benefits up to 24 months, 90-day notices, M.C.L. 500.3819(3).