Question

Medicare Part D (outpatient prescription drug insurance) is the part of Medicare that provides outpatient prescription drug coverage. It is provided only through private insurance companies that have contracts with the government. It is never provided directly by the government (like original Medicare is).

a) True
b) False

Answer 1

Medicare Part D, which provides outpatient prescription drug coverage, is only available through private insurance companies that have contracts with the government, making the statement true.

Step-by-step explanation:

The statement that Medicare Part D is provided only through private insurance companies that have contracts with the government is true. Medicare Part D is the portion of Medicare responsible for providing outpatient prescription drug coverage, and it is offered exclusively through private insurers that have agreements with the government, as opposed to being directly provided by the government like original Medicare.

Medicare Part D was established as part of the Medicare Modernization Act of 2003 to address the need for prescription drug coverage, especially among the elderly and disabled. The addition of this benefit was a response to the critical gap in Medicare coverage that left many without affordable access to necessary medications. It resulted in significant federal government expenditure, with costs projected to rise substantially over time.