Illinois Health Insurance Practice Exam

Which type of insurance is typically issued by Health Maintenance Organizations (HMOs)?

1. Medicare Supplement Insurance

2. Long-Term Care (LTC) Insurance

3. Medicaid

4. Medicare Advantage Plans

The correct answer is: Medicare Advantage Plans

The correct answer highlights that Health Maintenance Organizations (HMOs) often issue Medicare Advantage Plans. These plans are an alternative to original Medicare and provide coverage for a range of health services. HMOs emphasize coordinated care and typically require members to choose a primary care physician, obtain referrals for specialists, and utilize a network of providers. Medicare Advantage Plans are designed to offer additional benefits beyond what is covered by traditional Medicare and may include services such as routine vision and dental care, which are not typically covered by original Medicare. This alignment makes them a common offering from HMOs, as they are structured to focus on preventive care and managing patient health through a network model. Other options, while relevant in the health insurance landscape, do not typically fall under the offerings of HMOs. Medicare Supplement Insurance, for instance, provides additional coverage for costs not covered by original Medicare but is usually sold by private insurance companies rather than HMOs. Long-Term Care Insurance is focused on covering services for individuals needing assistance with daily living activities, which is also outside the scope of HMO offerings. Medicaid, while a key player in healthcare coverage, is a government program designed for low-income individuals and families, rather than an insurance type provided specifically by HMOs.