AD Banker Comprehensive Practice Exam

The insured may select a managed care version of a traditional Medicare Supplement Policy at a lower premium by choosing a policy that limits care to a specific list of hospitals and physicians. What is this policy called?

1. Medicaid Supplement Policy

2. Medicaid Select Policy

3. Medicare Supplement Policy

4. Medicare Select Policy

The correct answer is: Medicare Select Policy

The policy in question is referred to as a Medicare Select Policy. This type of policy allows the insured to benefit from lower premiums while agreeing to use a specific network of healthcare providers, which typically includes certain hospitals and physicians. By utilizing a managed care approach within the structure of Medicare, these policies help to control healthcare costs while still offering some level of supplemental coverage for services not covered by Original Medicare. Medicare Select Policies often operate similarly to Health Maintenance Organizations (HMOs) or Preferred Provider Organizations (PPOs) in the sense that they require members to coordinate their care with a defined group of providers. This arrangement allows insurers to negotiate better rates with a network of providers, thereby enabling them to offer lower premiums compared to standard Medicare Supplement Policies that do not have such restrictions.