EXAMFX Social Insurance Programs 1 — Questions and Answers
Question 1: Medicare Part A primarily provides coverage for which of the following?
- Physician office visits
- Hospital inpatient care (Correct answer)
- Prescription drugs
- Dental and vision care
Correct answer: Hospital inpatient care
Medicare Part A is the hospital insurance component that covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care.
Question 2: At what age does an individual typically become eligible for Medicare coverage?
- 60
- 62
- 65 (Correct answer)
- 67
Correct answer: 65
Medicare eligibility generally begins at age 65 for U.S. citizens and permanent residents who meet the work history requirements.
Question 3: Which of the following best describes Medicare Part B?
- Hospital insurance funded entirely by payroll taxes
- Supplemental medical insurance covering outpatient services (Correct answer)
- Prescription drug coverage added in 2006
- A managed care alternative to original Medicare
Correct answer: Supplemental medical insurance covering outpatient services
Medicare Part B is voluntary supplemental medical insurance that covers outpatient services, physician visits, and preventive care, requiring a monthly premium.
Question 4: Medicaid is jointly funded by the federal government and which other entity?
- Private insurance companies
- Individual policyholders
- State governments (Correct answer)
- Medicare trust funds
Correct answer: State governments
Medicaid is a joint federal-state program where both the federal government and individual state governments share funding responsibilities.
Question 5: Which Medicare part covers prescription drug benefits?
- Part A
- Part B
- Part C
- Part D (Correct answer)
Correct answer: Part D
Medicare Part D provides outpatient prescription drug coverage and was introduced by the Medicare Modernization Act of 2003, effective 2006.
Question 6: What is the primary eligibility criterion for Medicaid coverage?
- Age 65 or older
- Working a minimum number of quarters
- Low income and limited resources (Correct answer)
- Prior enrollment in Medicare Part A
Correct answer: Low income and limited resources
Medicaid is a needs-based program that primarily serves individuals and families with low incomes and limited financial resources.
Question 7: Medicare Advantage (Part C) plans are required to cover at minimum which services?
- Only prescription drugs
- Only hospital inpatient care
- All services covered under Original Medicare Parts A and B (Correct answer)
- Emergency care and preventive screenings only
Correct answer: All services covered under Original Medicare Parts A and B
Medicare Advantage plans must cover at minimum all the benefits provided under Original Medicare Parts A and B, though they may also offer additional benefits.
EXAMFX Social Insurance Programs 1
Medicare Part A primarily provides coverage for which of the following?