CRC CRC Social Security & Medicare Benefits 2

Question 1

What is Medicare Part A and how is it typically funded for most eligible Americans?

Accepted Answer

Hospital insurance funded by payroll taxes, premium-free for those with sufficient work history

Answer

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.

Question 2

What does Medicare Part B cover and what is its cost structure?

Accepted Answer

Outpatient medical services, funded by monthly premiums plus cost-sharing

Answer

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.

Question 3

What is IRMAA in the context of Medicare, and which clients does it affect?

Accepted Answer

An income-related monthly adjustment amount that increases Part B and D premiums for higher-income beneficiaries

Answer

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.

Question 4

What is the Medicare Part D late enrollment penalty and when does it apply?

Accepted Answer

A permanent monthly premium increase of 1% per month for each month of delay beyond the initial enrollment period without creditable drug coverage

Answer

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.

Question 5

What is a Medicare Supplement (Medigap) plan designed to do?

Accepted Answer

Pay some or all of the cost-sharing gaps in Original Medicare Parts A and B

Answer

Medigap plans are standardized private insurance policies sold to fill the deductibles, copays, and coinsurance gaps left by Original Medicare Parts A and B.

(CRC) Certified Retirement Counselor Practice Test

(CRC) Certified Retirement Counselor Practice Test

CRC CRC Social Security & Medicare Benefits 2