PSI Ohio Insurance Practice Exam

What is the most common way to supplement Medicare coverage?

1. Medicaid coverage

2. Employer-sponsored insurance

3. Coverage offered by private insurers

4. Short-term health plans

The correct answer is: Coverage offered by private insurers

Supplementing Medicare coverage is most commonly done through plans offered by private insurers, known as Medicare Advantage plans (Part C) or Medicare Supplement Insurance (Medigap). These options provide additional benefits that Medicare does not cover, such as deductibles, copayments, and other out-of-pocket costs, ensuring that seniors have access to more comprehensive healthcare solutions. Medicare Advantage plans are designed to replace Original Medicare and often include additional services like vision and dental care. Meanwhile, Medigap plans work alongside Original Medicare, filling in the coverage gaps. The prevalence of private insurance options for supplementing Medicare arises from regulations that have allowed these companies to offer tailored plans that meet the diverse needs of Medicare beneficiaries. While Medicaid coverage is essential for many low-income individuals and can provide additional assistance, it is not primarily used as a supplement for those with Medicare. Employer-sponsored insurance may offer coverage options for certain seniors but is typically less common for those who rely on Medicare as their primary health plan. Short-term health plans do not provide the comprehensive coverage necessary for Medicare beneficiaries and are generally not considered a reliable option for supplementing Medicare.