Illinois Health Insurance Practice Exam

What percentage of reasonable and customary Medicare approved eligible medical expenses does Part B pay after the annual deductible is satisfied?

1. 50%

2. 70%

3. 80%

4. 100%

The correct answer is: 80%

Part B of Medicare covers a significant portion of medically necessary services and supplies. After beneficiaries have paid their annual deductible, Medicare Part B typically pays 80% of the reasonable and customary charges for eligible medical expenses. This means that beneficiaries are responsible for the remaining 20%, which is often referred to as coinsurance. This structure is designed to help manage costs while ensuring that beneficiaries still have access to necessary medical care. The deductible must first be satisfied before the 80% coverage kicks in, which serves as a cost-sharing feature of the Medicare program. Thus, the correct answer accurately reflects how Medicare Part B operates in terms of payment for covered services.