Illinois Health Insurance Practice Exam

What does Medicare Advantage Plans (Part C) provide as an alternative?

1. Replacement for Part A

2. Replacement for Part B

3. Part D coverage

4. Alternative to enrolling in Part A and B and buying a supplemental policy

The correct answer is: Alternative to enrolling in Part A and B and buying a supplemental policy

Medicare Advantage Plans, also known as Part C, serve as an alternative way for individuals to receive their Medicare benefits. These plans are offered by private insurance companies approved by Medicare and combine the coverage provided by Part A (hospital insurance) and Part B (medical insurance) into a single plan. By choosing a Medicare Advantage Plan, beneficiaries do not need to enroll separately in Part A and Part B or purchase a supplemental policy, as these plans often include comprehensive coverage that meets the requirements of both Parts A and B. This makes the correct choice reflect the purpose and benefit of Medicare Advantage plans as a streamlined alternative for managing healthcare coverage. While some Medicare Advantage plans can include Part D (prescription drug coverage), they fundamentally do not replace Parts A or B, so those choices do not reflect the nature of what Medicare Advantage plans are designed to offer. Thus, the selection accurately captures the essence of what a Medicare Advantage Plan represents for beneficiaries looking for an integrated approach to their health insurance.