Illinois Health Insurance Practice Exam

What is the primary focus of Medicare Advantage Plans in regard to cost?

1. Eliminating all out-of-pocket costs for insured individuals

2. Maintaining fixed premiums for all enrollees

3. Charging a premium to the insured

4. Offering only government-subsidized coverage

The correct answer is: Charging a premium to the insured

Medicare Advantage Plans focus primarily on charging a premium to the insured. This is because Medicare Advantage Plans are offered by private insurance companies approved by Medicare, and these companies charge a monthly premium to provide coverage to individuals. While some Medicare Advantage Plans may offer additional benefits or cost-sharing options, it is essential to understand that a premium is typically required to participate in a Medicare Advantage Plan. Options A, B, and D are incorrect because Medicare Advantage Plans do not eliminate all out-of-pocket costs for insured individuals, maintain fixed premiums for all enrollees, or offer only government-subsidized coverage. While Medicare Advantage Plans may have different cost-sharing structures and benefits compared to Original Medicare, they are not designed to eliminate all out-of-pocket costs, maintain fixed premiums for all enrollees, or solely offer government-subsidized coverage.