Page |1
AHIP MEDICARE COMBINED CORE MODULES + FWA PRACTICE EXAM
250+ Questions | Answers & Rationales
SECTION A – MEDICARE BASICS & ELIGIBILITY (Q1–40)
1. Which federal agency administers Medicare?
A. SSA
B. CMS
C. CDC
D. FDA
Answer: B
Rationale: CMS administers Medicare; SSA handles
enrollment/eligibility.
2. Medicare Part A is mainly funded by:
A. Beneficiary premiums
B. Hospital Insurance payroll taxes
C. State general funds
D. Private grants
Answer: B
Rationale: Part A is funded primarily by payroll taxes.
3. Medicare Part B is funded by:
A. Payroll taxes only
B. Beneficiary premiums and general federal revenues
, Page |2
C. State Medicaid funds
D. Private insurance premiums only
Answer: B
Rationale: Part B is financed by premiums and general
revenues.
4. Medicare Part A covers:
A. Routine dental
B. Inpatient hospital, SNF, hospice, some home health
C. Outpatient prescription drugs
D. Long-term custodial care
Answer: B
Rationale: Part A covers facility-based care, not routine dental,
Part D drugs, or custodial care.
5. Medicare Part B covers:
A. Inpatient hospital only
B. Outpatient/physician services, preventive care, DME
C. Only prescription drugs
D. Only hospice
Answer: B
Rationale: Part B covers outpatient and professional services
and preventive care.
6. Original Medicare consists of:
A. Part A + Part B
, Page |3
B. Part C only
C. Part D only
D. Parts A, B, C, D
Answer: A
Rationale: Original Medicare includes Part A and Part B.
7. Premium-free Part A is available to those with:
A. 10 quarters of Medicare-covered employment
B. 40 quarters of Medicare-covered employment
C. No work history
D. Any employment
Answer: B
Rationale: 40 quarters qualifies for premium-free Part A.
8. To enroll in Medicare Advantage, a beneficiary must:
A. Be enrolled in Part A and Part B
B. Have only Part D
C. Have a Medigap policy
D. Be under 65
Answer: A
Rationale: MA requires Part A and Part B.
9. Medicare Part D provides:
A. Inpatient drug coverage only
B. Outpatient prescription drug coverage
, Page |4
C. DME only
D. Physician-administered drugs only
Answer: B
Rationale: Part D covers outpatient self-administered
prescriptions.
10. Medigap is:
A. Another name for Part C
B. Medicare Supplement Insurance
C. Part D coverage
D. A Medicaid program
Answer: B
Rationale: Medigap supplements Original Medicare.
11. Medicare eligibility due to disability usually begins after:
A. 12 months of SSDI
B. 24 months of SSDI
C. 36 months of SSDI
D. 6 months of SSDI
Answer: B
Rationale: Generally after 24 months of SSDI entitlement.
12. ESRD beneficiaries are eligible for Medicare:
A. Only after age 65
B. At any age if dialysis/transplant requirements met
AHIP MEDICARE COMBINED CORE MODULES + FWA PRACTICE EXAM
250+ Questions | Answers & Rationales
SECTION A – MEDICARE BASICS & ELIGIBILITY (Q1–40)
1. Which federal agency administers Medicare?
A. SSA
B. CMS
C. CDC
D. FDA
Answer: B
Rationale: CMS administers Medicare; SSA handles
enrollment/eligibility.
2. Medicare Part A is mainly funded by:
A. Beneficiary premiums
B. Hospital Insurance payroll taxes
C. State general funds
D. Private grants
Answer: B
Rationale: Part A is funded primarily by payroll taxes.
3. Medicare Part B is funded by:
A. Payroll taxes only
B. Beneficiary premiums and general federal revenues
, Page |2
C. State Medicaid funds
D. Private insurance premiums only
Answer: B
Rationale: Part B is financed by premiums and general
revenues.
4. Medicare Part A covers:
A. Routine dental
B. Inpatient hospital, SNF, hospice, some home health
C. Outpatient prescription drugs
D. Long-term custodial care
Answer: B
Rationale: Part A covers facility-based care, not routine dental,
Part D drugs, or custodial care.
5. Medicare Part B covers:
A. Inpatient hospital only
B. Outpatient/physician services, preventive care, DME
C. Only prescription drugs
D. Only hospice
Answer: B
Rationale: Part B covers outpatient and professional services
and preventive care.
6. Original Medicare consists of:
A. Part A + Part B
, Page |3
B. Part C only
C. Part D only
D. Parts A, B, C, D
Answer: A
Rationale: Original Medicare includes Part A and Part B.
7. Premium-free Part A is available to those with:
A. 10 quarters of Medicare-covered employment
B. 40 quarters of Medicare-covered employment
C. No work history
D. Any employment
Answer: B
Rationale: 40 quarters qualifies for premium-free Part A.
8. To enroll in Medicare Advantage, a beneficiary must:
A. Be enrolled in Part A and Part B
B. Have only Part D
C. Have a Medigap policy
D. Be under 65
Answer: A
Rationale: MA requires Part A and Part B.
9. Medicare Part D provides:
A. Inpatient drug coverage only
B. Outpatient prescription drug coverage
, Page |4
C. DME only
D. Physician-administered drugs only
Answer: B
Rationale: Part D covers outpatient self-administered
prescriptions.
10. Medigap is:
A. Another name for Part C
B. Medicare Supplement Insurance
C. Part D coverage
D. A Medicaid program
Answer: B
Rationale: Medigap supplements Original Medicare.
11. Medicare eligibility due to disability usually begins after:
A. 12 months of SSDI
B. 24 months of SSDI
C. 36 months of SSDI
D. 6 months of SSDI
Answer: B
Rationale: Generally after 24 months of SSDI entitlement.
12. ESRD beneficiaries are eligible for Medicare:
A. Only after age 65
B. At any age if dialysis/transplant requirements met
