Medicare and Medicaid - Review Questions Flashcards
Who is eligible for Medicare?
I) Mark, retired, age 62, collecting Social Security benefits
II) Manny, age 65, not yet retired and still working
III) Louise, age 64, married to Dan, age 65
IV) Patty, age 60 disabled with kidney failure
V) Paulo, age 62, collecting Social Security benefits and recently laid off
Choose the best answer.
1) II only
2) I, III and IV
3) I, III, IV and V
4) II and IV
4) II and IV
Mark, Louise and Paulo are too young. Manny is 65 and Patty has kidney failure.
Lorraine works for a large manufacturing firm, earning $125,000 per year. She turns 65 in August of this year. She is currently covered under her husband’s medical insurance plan through his employer. Her husband, Cliff, will not turn 65 until next year. A co-worker has told her that she must sign up for Medicare this year or face a penalty. What should Lorraine do this year regarding Medicare?
I) Lorraine can defer signing up for Medicare this year because she is covered under her husband’s health
insurance plan.
II) Lorraine must enroll in Medicare this year.
III) Lorraine may enroll in Medicare Part A only this year
IV) Lorraine may enroll in both Medicare Part A and Part B this year
Choose the best answer.
1) II Only
2) I Only
3) I, III and IV
4) I and IV only
3) I, III and IV
Because Lorraine is covered under her husband’s employer provided health insurance, she does not have to enroll in Medicare. However, she may choose to enroll in Part A or in Parts A and B. Deferring Part B when covered under an employer provided health plan will save Lorraine from paying Part B premiums.
Clare retired in January of last year as a top level executive with a Houston law firm. She is turning 65 in September of this year. Her income when working was $175,000 but since retiring, she has lived off her savings and her Social Security widow’s benefit. She wonders what her Medicare benefit will cost. Which of the following is correct regarding Clare’s Medicare premium costs?
Choose the best answer.
1) Part A is free and Part B is $164.90
2) Part B is $499.00
3) Part A is $499 per month
4) Part B is $428.60
4) Part B is $428.60
Part A is free to anyone with 40 credits. Although Part B is normally $164.90 per month, it is means tested based on MAGI looking back two prior years. For this year, Clare’s premium is based on her last working year with earned income that puts her, as filing single, into the $428.60 level. However, Clare can and should apply for a waiver of the Part B premium based on retirement, but she must apply for that waiver in order to pay a lower Part B premium.
Richard accepted an early retirement package from his employer three and one half years ago at age 64 that included continued health insurance coverage. On the advice of a close friend he has not yet applied for Medicare because his company provides retiree health insurance to him. The company has just announced that they will be eliminating the retiree health plan at the end of this year. Richard will apply for Medicare at that time. Which of the following is true?
I) His Part A premium will be zero
II) His Part B premium will be $164.90
III) He is no longer eligible for Medicare
IV) His Part B premium will be 30% higher because he is late
V) His Part A premium will be 30% higher because he is late
Choose the best answer.
1) III only
2) I and IV
3) IV and V
4) I and II
2) I and IV
His Part A premium will always be zero but coverage under retiree health does not provide an exemption from enrolling in Medicare Part B at age 65. Since he is three full years late (65, 66 and 67), the penalty is a 30% increase in Part B premiums for the rest of his life.
Lauren is approaching age 65. She had to retire earlier due to health issues and has been paying a pretty stiff monthly premium for her health benefits through a private insurance policy. At 65, her understanding is that Medicare Part A will have no cost and Part B will cost $164.90 per month. This is certainly more affordable for her than her current policy. However, she has also been told that Part A and B contain “gaps” or holes in coverage which she needs to fill in with supplemental coverage. Which of the following are accurate statements about Medicare Part A and B, supplemental coverage and other options?
I) Parts A and B will be sufficient coverage
II) Part B usually has some basic coverage for prescription drugs
III) Part C, if selected, will replace Part A and B and include coverage to fill the “gaps”
IV) Part D is an all-inclusive option that provides hospital, doctor and prescription coverage
V) A medigap policy can be purchased from an insurance company to fill the gaps of Parts A and B
Choose the best answer.
1) III and V
2) I and II
3) III
4) III, IV and V
1) III and V
Parts A and B contain significant gaps in coverage and have no coverage for prescription drugs outside of the hospital. Part C is “Medicare Advantage” which provides full coverage, through an HMO or PPO arrangement, often with prescription drug coverage. A Medigap policy fills in the gaps in Part A and Part B. Part D only covers prescription drugs.
Which of the following are tools that individuals and couples can legally use to help qualify for Medicaid?
I) Medicaid Annuity payable to “at home” spouse
II) Transferring property to a revocable trust more than five years ago
III) Transferring assets to an immediate family member more than three years ago
IV) Gifting assets to charity
V) Purchasing “non-countable” assets
Choose the best answer.
1) I, II, IV and V
2) II and IV
3) III and V
4) I and V
1) I, II, IV and V
A qualified Medicaid Annuity payable to the spouse changes an asset into income. Property transferred to a revocable trust is still considered “owned” by the transferor. Transfers must be made more than five years ago, regardless of who they are transferred to, or whether they are gifted to charity. Purchasing “non-countable” assets such as a new home or making home improvements will help with qualification.
Medicaid annuities must contain certain provisions in order to “qualify” for exclusion. Which of the following features are not necessary for a Medicaid annuity to contain in order to be considered qualified?
I) The annuity must be transferable
II) The state must be named Primary Beneficiary
III) The annuity must contain a provision making it irrevocable
IV) The annuity payout must be close to life expectancy
V) The annuity payout can be any period as long as it is not longer than life expectancy
Choose the best answer.
1) II and V
2) I, III and V
3) III and IV
4) I, II and V
4) I, II and V
The annuity cannot be transferable and the state must be the Remainder Beneficiary not the Primary Beneficiary. The payout period must bear a reasonable relatedness to the purchaser’s life expectancy.
