Question

Which of the following is true regarding Medicare?

A) Eligibility for the plan is based on both need and age.
B) The entire plan is free to qualified participants.
C) Part of the program is optional and has a charge.
D) Virtually all medical expenses are paid for those covered.

Answer 1

Medicare has two parts: Part A for hospital charges and Part B for medical expenses. Part B has a monthly premium and an annual deductible. Therefore, option C is true regarding Medicare.

Step-by-step explanation:

Medicare has two parts. Part A pays some of the hospital charges for individuals who are eligible for Social Security benefits. It is funded by payroll deductions and matching contributions from a patient's employer. People are responsible for both a deductible charge that must be paid before Medicare payments are authorized and copayments for many hospital-related services. There are no limits on the total costs people can incur.

In contrast, Part B covers medical expenses such as doctor visits, outpatient care, and preventive services. To qualify for Part B, individuals must pay a monthly premium, and there is an annual deductible. Once the deductible is met, Medicare usually pays 80% of the approved amount for covered services, while the individual is responsible for the remaining 20%.

Therefore, the correct answer is:

C) Part of the program is optional and has a charge.