AD Banker Comprehensive Practice Exam

Which of the following statements is FALSE regarding Medigap policies?

1. Medigap policies may not duplicate benefits provided by Medicare

2. Losses resulting from sickness may not be treated differently than losses resulting from accidents

3. A Medigap policy provides the same coverage as a Medicare policy

4. Except for nonpayment of premium, coverage may not be terminated on a spouse solely because the insurer has reason to terminate coverage on an insured

The correct answer is: A Medigap policy provides the same coverage as a Medicare policy

The chosen statement indicates that a Medigap policy provides the same coverage as a Medicare policy, which is false. Medigap policies, also known as Medicare Supplement Insurance, are designed to help cover some of the costs that Medicare does not, such as copayments, coinsurance, and deductibles. However, they do not provide the same coverage as Medicare; instead, they complement Medicare by filling in the gaps in coverage. It’s important to understand that Medigap policies are distinct from Medicare in that they do not provide medical services on their own but rather work alongside Medicare to reduce out-of-pocket expenses for beneficiaries. Each Medigap policy is standardized, which means they offer specific benefits that may differ based on the plan type, but they are not a replacement for Medicare coverage. The other statements accurately describe aspects of Medigap policies. Medigap policies may not duplicate Medicare benefits because they exist specifically to supplement the benefits provided by Medicare. Additionally, it is true that losses from sickness cannot be treated differently than those from accidents in these policies, ensuring that both types of losses are handled under the same terms. Finally, the termination clause regarding a spouse's coverage under a Medigap policy highlights that coverage can only be terminated