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Insurance · Licensing exam

Insurance Medicare and Health Exchange Basics

Medicare parts, supplement plans, and health insurance marketplace concepts tested on health insurance licensing exams.

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What does Medicare Part A cover?
Hospital inpatient care, skilled nursing facility care, hospice care, and some home health services.
Is Medicare Part A premium required for someone who paid Medicare taxes for 10+ years?
No, Part A is typically premium-free for those who meet the work requirement.
What does Medicare Part B cover?
Physician services, outpatient hospital care, diagnostic tests, and durable medical equipment.
What is the typical premium structure for Medicare Part B?
A monthly premium paid by the enrollee, adjusted based on income level.
What does Medicare Part C (Medicare Advantage) do?
Provides an alternative way to receive Part A and B benefits through private insurance plans, typically including prescription drug coverage.
What is Medicare Part D?
Coverage for prescription drugs offered by private insurance companies approved by Medicare.
Can someone enroll in both Original Medicare (Parts A and B) and Medicare Advantage (Part C)?
No, you must choose either Original Medicare or Medicare Advantage, not both.
What are Medigap plans (Medicare Supplement)?
Private insurance policies that help pay for costs not covered by Original Medicare, such as copayments, coinsurance, and deductibles.
Can you use a Medigap plan with Medicare Advantage?
No, Medigap supplements Original Medicare only; it cannot be used with Medicare Advantage.
What is the Medigap open enrollment period?
Six months starting when you are age 65 or older and enrolled in Medicare Part B, or within 63 days of losing other health coverage.
What is the Health Insurance Marketplace?
A system where individuals can compare and purchase qualified health plans (QHP) from multiple insurers, often with access to subsidies.
What are the four metal levels in the Health Insurance Marketplace?
Bronze, Silver, Gold, and Platinum, representing different levels of cost-sharing between the plan and the enrollee.
What percentage of healthcare costs does a Silver plan typically cover?
Approximately 70 percent; the enrollee is responsible for approximately 30 percent.
What is a Bronze plan in the marketplace?
The lowest-cost tier of marketplace plans where the plan covers approximately 60 percent of healthcare costs and the enrollee covers approximately 40 percent.
What is a Gold plan in the marketplace?
A marketplace plan where the plan covers approximately 80 percent of healthcare costs and the enrollee covers approximately 20 percent.

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