State RegulationsPA specificDifficulty 3/5
A producer tells a client that a lettered Medicare supplement plan pays different benefits depending on which insurer sells it. Under Pennsylvania's standardized plan framework, what is the accurate statement?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under 40 P.S. §§ 3101–3112 and the Medicare supplement regulations administered by the Pennsylvania Insurance Department, standardization fixes the benefits of each lettered plan, not the price. An insurer's Plan G, for example, must deliver the same core benefits as every other insurer's Plan G; what varies among companies is the premium and the service experience. The producer's statement confuses the standardized benefit package with the competitive pricing layer, which is precisely the distinction the framework is built on.
Why the other options are wrong
- A) Standardization applies to benefits, not premiums; Pennsylvania does not fix a single uniform premium for each lettered plan.
- B) Any insurer approved to write the product may offer the lettered plans; company size does not determine which plans exist or are recognized.
- C) This reverses the rule: benefits are standardized while insurers compete on premiums, not premiums standardized while benefits vary.
Memory hook
Benefits standardized, price personalized — the letter fixes coverage, not cost.