PSI Ohio Insurance Practice Exam

Which of the following plans can be purchased to provide coverage in place of Medicare Parts A and B combined?

1. Medicare Assistance Program

2. Medicare Advantage

3. Medicare Supplement Plan

4. Medigap Insurance

The correct answer is: Medicare Advantage

Medicare Advantage plans, often referred to as Part C, are specifically designed to provide coverage that replaces Medicare Parts A and B. These plans are offered by private insurance companies and must include all the benefits of Medicare Parts A and B but may also offer additional coverage options such as vision, dental, and prescription drug coverage. By combining and enhancing original Medicare coverage, Medicare Advantage plans provide a comprehensive alternative, which can streamline healthcare management for beneficiaries. Additionally, these plans may include a cap on out-of-pocket expenses, something that Medicare Parts A and B do not offer on their own. On the other hand, while Medicare Supplement Plans (also known as Medigap Insurance) are designed to fill in the gaps in coverage left by original Medicare, they do not provide an alternative coverage solution but rather complement it, helping with costs like copayments and deductibles. Therefore, they cannot be seen as a direct substitute for Medicare Parts A and B as Medicare Advantage does.