State RegulationsMI specificDifficulty 1/5
What is the primary purpose of a Medicare supplement policy sold in Michigan?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Per the Michigan Department of Insurance and Financial Services (DIFS), a Medicare supplement (Medigap) policy is designed to fill the gaps left by original Medicare, such as coinsurance, copayments, and deductibles. It works alongside Medicare rather than replacing it, which is why Michigan regulates it as a standardized, guaranteed-renewable companion product.
Why the other options are wrong
- A) A supplement never replaces original Medicare; a Medicare Advantage plan is the product that provides an alternative way to receive Medicare benefits.
- C) Custodial long-term care is the domain of long-term care insurance, not a Medicare supplement policy.
- D) Coordination with an employer retiree plan is not the product's purpose; the supplement fills Medicare's own cost-sharing gaps.
Memory hook
Medigap fills Medicare's gaps; it never replaces Medicare.