State RegulationsMI specificDifficulty 2/5
A retiree in Kalamazoo wants to reduce his out-of-pocket Medicare costs, and his producer describes two private options. Which statement correctly distinguishes a Medicare supplement policy from a Medicare Advantage plan?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
DIFS consumer materials draw this exact distinction: a Medicare supplement supplements original Medicare Part A and Part B by paying cost-sharing, while a Medicare Advantage plan is a private alternative delivery system through which the beneficiary receives Medicare benefits. Only Medicare supplement plans are standardized into lettered plans, and both products require Medicare enrollment.
Why the other options are wrong
- A) The description is reversed; the Advantage plan replaces the original Medicare delivery method, while the supplement pays after Medicare.
- C) Only Medicare supplement plans are standardized letter plans; Medicare Advantage plans are not.
- D) Both products presuppose Medicare enrollment; neither is sold to persons outside Medicare.
Memory hook
Supplement rides alongside Medicare; Advantage replaces the ride.