CFG Healthcare & Long-Term Care Planning Flashcards
6 cards from real CFG practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CFG Healthcare & Long-Term Care Planning flashcards as text
What is 'Medigap' insurance and what does it primarily cover?
Answer: Supplemental insurance that covers Medicare deductibles, copayments, and coinsurance
Medigap (Medicare Supplement Insurance) is sold by private insurers to cover cost-sharing gaps in Original Medicare such as deductibles, copayments, and coinsurance.
At what age does an individual become eligible for Medicare in the United States?
Answer: 65
Most Americans become eligible for Medicare at age 65, provided they or their spouse paid Medicare taxes for at least 10 years.
What is the 'spend-down' process in Medicaid long-term care planning?
Answer: Reducing countable assets to meet Medicaid eligibility thresholds
The Medicaid spend-down process involves reducing countable assets below the state-specific eligibility threshold, often by paying for care, making allowable transfers, or purchasing exempt assets.
What is the Medicaid 'look-back period' for asset transfers, and what penalty applies for improper transfers?
Answer: 60 months; a period of Medicaid ineligibility proportional to the value transferred
The federal Medicaid look-back period is 60 months (5 years); improper asset transfers within this period create a penalty period of ineligibility calculated by dividing the transferred amount by the average monthly nursing home cost.
Which type of Medicare Advantage plan requires members to use a network of providers and obtain referrals from a primary care physician?
Answer: Health Maintenance Organization (HMO)
Medicare Advantage HMO plans require members to use network providers and typically need a referral from a primary care physician to see specialists.
What is 'inflation protection' in a long-term care insurance policy, and why is it important for younger purchasers?
Answer: A rider that increases the benefit amount annually to keep pace with rising care costs
Inflation protection riders, typically offering 3–5% compound annual increases, ensure that LTCI benefits keep pace with the rising cost of care over time, which is especially critical for policies purchased decades before expected use.