South Carolina Life and Health Practice Exam

Which type of insurance plan would best suit an individual on Medicare concerned about excess charges?

1. Medicare Advantage Plan

2. Medicare supplement Plan F

3. Standard Medicare Plan

4. Medicare Part D

The correct answer is: Medicare supplement Plan F

A Medicare supplement Plan F is ideal for an individual on Medicare who is concerned about excess charges because it covers a wide range of out-of-pocket costs that original Medicare may not fully pay. Specifically, Plan F covers excess charges for services provided by providers who do not accept Medicare assignment, meaning that the provider could potentially bill the patient for the difference between what Medicare pays and what the provider charges. In addition to covering excess charges, Plan F also provides comprehensive coverage by paying for things like copayments, deductibles, and coinsurance, which can significantly reduce the financial burden on the insured. This comprehensive coverage is especially important for those who want to manage their healthcare expenses effectively while on Medicare. Other types of plans, such as Medicare Advantage Plans, may have network restrictions and might not cover excess charges as comprehensively. The Standard Medicare Plan provides basic coverage but leaves many gaps that could result in higher out-of-pocket costs. Medicare Part D, focused specifically on prescription drug coverage, does not address the concern of excess charges at all. Thus, Medicare supplement Plan F stands out as the best option for someone looking to avoid unexpected healthcare costs associated with excess charges.