CFG CFG Healthcare & Long-Term Care Planning 2

Question 1

What is 'Medigap' insurance and what does it primarily cover?

Accepted Answer

Supplemental insurance that covers Medicare deductibles, copayments, and coinsurance

Answer

Medigap (Medicare Supplement Insurance) is sold by private insurers to cover cost-sharing gaps in Original Medicare such as deductibles, copayments, and coinsurance.

Question 2

At what age does an individual become eligible for Medicare in the United States?

Accepted Answer

65

Answer

Most Americans become eligible for Medicare at age 65, provided they or their spouse paid Medicare taxes for at least 10 years.

Question 3

What is the 'spend-down' process in Medicaid long-term care planning?

Accepted Answer

Reducing countable assets to meet Medicaid eligibility thresholds

Answer

The Medicaid spend-down process involves reducing countable assets below the state-specific eligibility threshold, often by paying for care, making allowable transfers, or purchasing exempt assets.

Question 4

What is the Medicaid 'look-back period' for asset transfers, and what penalty applies for improper transfers?

Accepted Answer

60 months; a period of Medicaid ineligibility proportional to the value transferred

Answer

The federal Medicaid look-back period is 60 months (5 years); improper asset transfers within this period create a penalty period of ineligibility calculated by dividing the transferred amount by the average monthly nursing home cost.

Question 5

Which type of Medicare Advantage plan requires members to use a network of providers and obtain referrals from a primary care physician?

Accepted Answer

Health Maintenance Organization (HMO)

Answer

Medicare Advantage HMO plans require members to use network providers and typically need a referral from a primary care physician to see specialists.

(CFG) Certified Financial Gerontologist Practice Test

(CFG) Certified Financial Gerontologist Practice Test

CFG CFG Healthcare & Long-Term Care Planning 2