Maryland Life and Health Insurance License Practice Exam

Which type of plan is most suitable for someone on Medicare concerned about excess charges?

1. Medicare supplement Plan F

2. High-deductible health plan

3. Traditional Medicare Advantage

4. Medicaid

The correct answer is: Medicare supplement Plan F

Medicare supplement Plan F is the most suitable choice for someone on Medicare who is concerned about excess charges. This plan is designed to cover out-of-pocket costs that are not fully paid by Medicare, including deductibles, coinsurance, and copayments. Specifically, it provides comprehensive coverage, including the benefits that protect against excess charges from providers who do not accept Medicare assignment. Providers that accept Medicare assignment agree to accept the Medicare-approved amount as full payment for services, which means that there are no excess charges. However, in cases where providers do not accept assignment, excess charges can occur, and this is where Plan F becomes beneficial. It covers the difference between the Medicare-approved amount and what the provider may charge, effectively minimizing the financial impact on the beneficiary. The other options, while they serve distinct purposes, do not specifically address the concern of excess charges as effectively as Plan F does. The high-deductible health plan serves individuals seeking lower premiums but may expose them to higher out-of-pocket costs initially. Traditional Medicare Advantage plans might have varying levels of coverage, including potential out-of-network charges that could lead to excess costs. Medicaid primarily assists low-income individuals and may not align with the specific coverage needs for those currently enrolled in Medicare.