Question

Which of the following statements about the Medicare Prescription Drug Improvement and Modernization Act of 2003 is not true?

A) Seniors may purchase various forms of coverage for prescription drugs.
B) The act allows coverage for seniors and people with disabilities.
C) Low-income seniors are subject to a $250 deductible.
D) Individuals can establish a health-savings account.

Answer 1

The incorrect statement about the Medicare Prescription Drug Improvement and Modernization Act of 2003 is that low-income seniors are subject to a $250 deductible, which is not true as the Act provides subsidies for those individuals. The Act also allows for the purchase of drug coverage and the establishment of health-savings accounts.

Step-by-step explanation:

The statement about the Medicare Prescription Drug Improvement and Modernization Act of 2003 that is not true is: C) Low-income seniors are subject to a $250 deductible. This provision does not accurately represent the details of the act. Instead, the act provides for low-income individuals to receive substantial subsidies that help them afford their needed prescription drugs without such a high deductible.

Seniors and people with disabilities indeed may purchase various forms of coverage for prescription drugs (A), and the act allows coverage for these groups (B). Additionally, individuals can establish health-savings accounts (HSAs) (D), which were introduced to help individuals save for medical expenses on a tax-advantaged basis.