CRC Social Security & Medicare Benefits Flashcards
6 cards from real CRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRC Social Security & Medicare Benefits flashcards as text
What is Medicare Part A and how is it typically funded for most eligible Americans?
Answer: Hospital insurance funded by payroll taxes, premium-free for those with sufficient work history
Medicare Part A covers inpatient hospital, skilled nursing, and hospice care; it is premium-free for those with at least 40 quarters of Medicare-covered employment.
What does Medicare Part B cover and what is its cost structure?
Answer: Outpatient medical services, funded by monthly premiums plus cost-sharing
Medicare Part B covers outpatient physician visits, preventive services, and durable medical equipment, and requires a monthly premium (subject to IRMAA for higher-income beneficiaries) plus 20% coinsurance.
What is IRMAA in the context of Medicare, and which clients does it affect?
Answer: An income-related monthly adjustment amount that increases Part B and D premiums for higher-income beneficiaries
IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to Medicare Part B and Part D premiums for individuals whose modified adjusted gross income exceeds certain thresholds.
What is the Medicare Part D late enrollment penalty and when does it apply?
Answer: A permanent monthly premium increase of 1% per month for each month of delay beyond the initial enrollment period without creditable drug coverage
The Part D late enrollment penalty is 1% of the national base beneficiary premium per month of delayed enrollment without creditable coverage, and it is added to the premium permanently.
What is a Medicare Supplement (Medigap) plan designed to do?
Answer: Pay some or all of the cost-sharing gaps in Original Medicare Parts A and B
Medigap plans are standardized private insurance policies sold to fill the deductibles, copays, and coinsurance gaps left by Original Medicare Parts A and B.
When is a retiree's Initial Enrollment Period (IEP) for Medicare?
Answer: The 7-month window beginning 3 months before the month they turn 65
The Medicare Initial Enrollment Period is a 7-month window: the 3 months before the birthday month, the birthday month itself, and the 3 months after, during which enrollment avoids late penalties.