Long Term Care Certification Practice Test

Which of the following is NOT true regarding Medigap policies?

1. They cover additional costs not paid by Medicare

2. They are standardized across all providers

3. Companies with group Medigap plans are required to offer individual plans

4. Medigap policies do not cover long-term care

The correct answer is: Companies with group Medigap plans are required to offer individual plans

Medigap policies are designed to supplement Original Medicare by covering costs that Medicare does not, such as copayments, coinsurance, and deductibles. They are standardized plans, meaning that the benefits of each plan type (like Plan A, Plan B, etc.) are consistent across different insurance companies, ensuring consumers receive the same coverage no matter where they purchase the policy. The assertion regarding companies with group Medigap plans is inaccurate. While providers must adhere to regulations regarding Medigap, they are not mandated to offer individual plans if they have group plans. This means that some companies may choose to sell only group Medigap insurance, for instance, offering benefits to organizations or businesses rather than individuals, hence this choice is the correct response to the question. On the other hand, the other statements regarding Medigap policies are true. They do provide coverage for additional costs not covered by Medicare and do not extend to long-term care, which is a key distinction when considering long-term care insurance. Understanding these characteristics is crucial for individuals seeking to navigate their Medicare options effectively.