Maryland Life and Health Insurance License Practice Exam

Benefits provided by a Medicare Supplement policy must NOT be allowed to:

1. Duplicate Medicare benefits

2. Cover only hospital stays

3. Include preventive services

4. Offer a drug plan

The correct answer is: Duplicate Medicare benefits

The benefits provided by a Medicare Supplement policy must not duplicate Medicare benefits because the purpose of these supplementary plans is to fill in the gaps of coverage that Medicare does not fully pay for. Medicare already provides a core set of benefits, and if a Medicare Supplement policy were permitted to duplicate those benefits, it would undermine the nature of supplemental coverage and burden the insurance system. This regulation ensures that Medicare beneficiaries have access to extended protections and benefits without overlapping coverage that they already receive from Medicare. In this way, the Medicare Supplement policy is designed to enhance the original Medicare coverage rather than replicate it. The other options, while they may raise discussions about coverage, do not align with the core principle that Medicare Supplement policies are meant to complement Medicare and not replicate its benefits. For instance, covering only hospital stays is too limiting, as these policies should offer broader coverage. Including preventive services is not a duplication; rather, it enhances care. Offering a drug plan might be desirable, but it is typically covered under separate Medicare Part D plans and is not a necessary feature of Medicare Supplement policies.