State RegulationsVA specificDifficulty 2/5
A producer is explaining Medicare supplement policies to a new client in Virginia. Which statement may the producer accurately make?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The Virginia Bureau of Insurance's Medicare supplement rules under 14 VAC 5-170-10 frame these policies as supplements to Medicare: they coordinate with Original Medicare and pay the cost-sharing amounts Medicare leaves behind. Representing the product in any other way — as a Medicare replacement, a drug plan, or a long-term care policy — misdescribes its purpose and exposes the producer to misrepresentation standards enforced by the Virginia Bureau of Insurance.
Why the other options are wrong
- A) The policy supplements Medicare rather than replacing it; Original Medicare remains the primary coverage.
- C) Built-in prescription drug coverage is not a Medicare supplement feature; drug coverage comes from separate Medicare drug plans.
- D) Extended nursing home stays are covered by long-term care insurance; a Medicare supplement does not pay for custodial care.
Memory hook
Supplement means side-by-side: Medicare pays first, Medigap mops up the gaps.