Competency 14 Section 4

Question 1

1. Medicare advantage is a fee-for-service program.

Answer 1

False. Traditional Medicare is fee-for-service while Medicare Advantage is based off
of managed care systems. (LO 14-4-1)

Question 2

2. The initial enrollment period for Medicare Advantage is the same as it is for
   Medicare Parts A and B.

Answer 2

True. (LO 14-4-1)

Question 3

3. Once enrolled in a Medicare Advantage plan a participant cannot switch plans.

Answer 3

False. Participants can switch to alternate Medicare Advantage plans during open
and special enrollment periods. (LO 14-4-1)

Question 4

4. Once enrolled in Medicare Advantage a participant cannot switch to traditional
   Medicare

Answer 4

False. A participant can drop Medicare Advantage and switch to traditional
Medicare. (LO 14-4-1)

Question 5

5. Medicare Advantage can present difficulties to retirees due to the complexities of a
   managed care system

Answer 5

True. (LO 14-4-2)

Question 6

6. The current trend in Medicare is that traditional Medicare is more popular than
   Medicare Advantage

Answer 6

True. (LO 14-4-2)

Question 7

47. Which of the following statements about Medicare Advantage are true? (LO 14-4-1)
    I. Once enrolled in Medicare Advantage a participant can never switch back to Traditional Medicare.
    II. Medicare Advantage often provides additional services such as vision care or hearing exams not covered by traditional Medicare.
    A. I only
    B. II only
    C. Both I and II
    D. Neither I nor II

Answer 7

47. The answer is B. Statement I is incorrect. Anyone can join, switch, or drop a MA plan. Coverage begins on January 1 of the next year. Medicare participants with end-stage renal disease may join a MA plan only under limited circumstances

Question 8

48. Which of the following statements concerning the threshold for the itemized deduction of health care expenses is (are) correct? (LO 14-4-2)
    I. The threshold change does not become effective for taxpayers 65 and older until 2017.
    II. The threshold change will make it more difficult to qualify for deductible medical expenses.
    A. I only
    B. II only
    C. Both I and II
    D. Neither I nor II

Answer 8

48. The answer is C. Both statements are correct