South Carolina Insurance Practice Exam

Which plan is typically recommended for individuals on Medicare concerned about extra charges?

1. Medicare Advantage Plan

2. Medicare Supplement Plan F

3. Medicare Part A

4. Medicare Part D

The correct answer is: Medicare Supplement Plan F

A Medicare Supplement Plan F is typically recommended for individuals on Medicare who are concerned about extra charges. This plan is designed to fill the gaps left by Original Medicare (Part A and Part B). It helps cover out-of-pocket costs such as deductibles, copayments, and coinsurance, which can be a significant financial burden for many beneficiaries. Medicare Supplement Plan F specifically covers almost all out-of-pocket expenses that Original Medicare doesn't pay. This includes coverage for excess charges that some healthcare providers may levy above what Medicare considers reasonable. Because of this comprehensive coverage, individuals can have greater peace of mind knowing that they will not incur unexpected medical expenses, thereby alleviating concerns about extra charges. In contrast, Medicare Advantage Plans, while providing additional benefits, often come with their own network restrictions and out-of-pocket costs. Medicare Part A covers inpatient hospital stays and is integral but does not address extra charges. Medicare Part D focuses on prescription drug coverage and does not provide the supplementary coverage needed for out-of-pocket medical costs. Therefore, choosing a Medicare Supplement Plan F is an effective way to manage the financial risks associated with additional healthcare expenses while on Medicare.