State RegulationsMI specificDifficulty 1/5
Two different Michigan insurers both sell Medicare supplement Plan G. What is true about the benefits under the two policies?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Per the Michigan Department of Insurance and Financial Services (DIFS), Medicare supplement plans are standardized by letter: a Plan G contains the same benefits no matter which insurer issues it. Because the benefit package is fixed, competition occurs on price and service, so premiums can and do differ between insurers for the identical lettered plan.
Why the other options are wrong
- B) Standardization means the insurer cannot redesign the benefits of a lettered plan.
- C) Benefits are indeed identical, but Michigan law does not fix premiums; insurers compete on price.
- D) Market share has no effect on plan benefits; every Plan G carries the same schedule of benefits.
Memory hook
Same letter, same benefits; the only thing to shop is the price.