CERTIFIED MEDICAID PLANNER (CMP™) EXAMINATION
COMPLETE 200-QUESTION PRACTICE BANK WITH DETAILED
RATIONALES
TABLE OF CONTENTS
Section Domain Approx. Page
Questions Reference
I Medicaid Program 1–25 2
Fundamentals
II Eligibility Criteria 26–55 6
III Income and Asset Rules 56–90 11
IV Planning Techniques 91–125 17
V Long-Term Care Services 126–150 23
VI Trusts and Other Tools 151–175 27
VII Estate Recovery and Liens 176–190 31
VIII Ethics and Professional 191–200 34
Practice
SECTION I: MEDICAID PROGRAM FUNDAMENTALS (Questions 1–25)
Question 1
Under which title of the Social Security Act was the Medicaid program
originally established?
,A) Title XVIII
B) Title XIX
C) Title XXI
D) Title XVI
Correct Answer: B
Rationale: Medicaid was established in 1965 under Title XIX of the
Social Security Act as a cooperative federal-state program to provide
medical assistance to certain low-income individuals and families. Title
XVIII established Medicare, while Title XXI created the Children's Health
Insurance Program (CHIP). Title XVI governs the Supplemental Security
Income (SSI) program.
Question 2
Which federal agency is primarily responsible for overseeing the
Medicaid program at the national level?
A) Department of Veterans Affairs (VA)
B) Social Security Administration (SSA)
C) Centers for Medicare & Medicaid Services (CMS)
D) Department of Labor (DOL)
Correct Answer: C
Rationale: CMS, operating under the Department of Health and Human
Services, is the federal agency that administers the Medicaid program,
establishes federal guidelines, approves state plan amendments and
waivers, and monitors state compliance. The VA, SSA, and DOL have no
direct oversight role in Medicaid administration.
,Question 3
Medicaid is jointly funded by which combination of sources?
A) Federal government only
B) State governments only
C) Federal and state governments
D) Federal, state, and county governments equally
Correct Answer: C
Rationale: Medicaid is a means-tested entitlement program jointly
funded by the federal government and individual state governments.
The federal government matches state expenditures through the
Federal Medical Assistance Percentage (FMAP), which varies by state
based on per capita income. While some states may receive county
contributions, the primary funding partnership is between federal and
state sources.
Question 4
Which of the following best describes the difference between Medicare
and Medicaid?
A) Medicare is income-based, while Medicaid is age-based
B) Medicare is a federal health insurance program for those 65 and
older or disabled, while Medicaid is a federal-state program for low-
income individuals
C) Medicare covers long-term nursing home care indefinitely, while
Medicaid does not
, D) Medicare is administered by states, while Medicaid is administered
by the federal government
Correct Answer: B
Rationale: Medicare is a federal health insurance program primarily for
individuals aged 65 and older, certain younger people with disabilities,
and those with End-Stage Renal Disease (ESRD), regardless of income.
Medicaid is a means-tested joint federal-state program that provides
health coverage to low-income individuals, families, and those needing
long-term care. Medicare does not cover long-term custodial nursing
home care indefinitely; Medicaid is the primary payer for long-term
care services.
Question 5
A state that wishes to implement a program variation from federal
Medicaid requirements must typically seek approval through which
mechanism?
A) A presidential executive order
B) A Section 1115 waiver
C) A congressional amendment
D) A Supreme Court ruling
Correct Answer: B
Rationale: Section 1115 of the Social Security Act allows the Secretary
of Health and Human Services to approve experimental, pilot, or
demonstration projects that promote the objectives of the Medicaid
program. States use these waivers to test new approaches to delivering
and paying for care. Executive orders, congressional amendments, and
COMPLETE 200-QUESTION PRACTICE BANK WITH DETAILED
RATIONALES
TABLE OF CONTENTS
Section Domain Approx. Page
Questions Reference
I Medicaid Program 1–25 2
Fundamentals
II Eligibility Criteria 26–55 6
III Income and Asset Rules 56–90 11
IV Planning Techniques 91–125 17
V Long-Term Care Services 126–150 23
VI Trusts and Other Tools 151–175 27
VII Estate Recovery and Liens 176–190 31
VIII Ethics and Professional 191–200 34
Practice
SECTION I: MEDICAID PROGRAM FUNDAMENTALS (Questions 1–25)
Question 1
Under which title of the Social Security Act was the Medicaid program
originally established?
,A) Title XVIII
B) Title XIX
C) Title XXI
D) Title XVI
Correct Answer: B
Rationale: Medicaid was established in 1965 under Title XIX of the
Social Security Act as a cooperative federal-state program to provide
medical assistance to certain low-income individuals and families. Title
XVIII established Medicare, while Title XXI created the Children's Health
Insurance Program (CHIP). Title XVI governs the Supplemental Security
Income (SSI) program.
Question 2
Which federal agency is primarily responsible for overseeing the
Medicaid program at the national level?
A) Department of Veterans Affairs (VA)
B) Social Security Administration (SSA)
C) Centers for Medicare & Medicaid Services (CMS)
D) Department of Labor (DOL)
Correct Answer: C
Rationale: CMS, operating under the Department of Health and Human
Services, is the federal agency that administers the Medicaid program,
establishes federal guidelines, approves state plan amendments and
waivers, and monitors state compliance. The VA, SSA, and DOL have no
direct oversight role in Medicaid administration.
,Question 3
Medicaid is jointly funded by which combination of sources?
A) Federal government only
B) State governments only
C) Federal and state governments
D) Federal, state, and county governments equally
Correct Answer: C
Rationale: Medicaid is a means-tested entitlement program jointly
funded by the federal government and individual state governments.
The federal government matches state expenditures through the
Federal Medical Assistance Percentage (FMAP), which varies by state
based on per capita income. While some states may receive county
contributions, the primary funding partnership is between federal and
state sources.
Question 4
Which of the following best describes the difference between Medicare
and Medicaid?
A) Medicare is income-based, while Medicaid is age-based
B) Medicare is a federal health insurance program for those 65 and
older or disabled, while Medicaid is a federal-state program for low-
income individuals
C) Medicare covers long-term nursing home care indefinitely, while
Medicaid does not
, D) Medicare is administered by states, while Medicaid is administered
by the federal government
Correct Answer: B
Rationale: Medicare is a federal health insurance program primarily for
individuals aged 65 and older, certain younger people with disabilities,
and those with End-Stage Renal Disease (ESRD), regardless of income.
Medicaid is a means-tested joint federal-state program that provides
health coverage to low-income individuals, families, and those needing
long-term care. Medicare does not cover long-term custodial nursing
home care indefinitely; Medicaid is the primary payer for long-term
care services.
Question 5
A state that wishes to implement a program variation from federal
Medicaid requirements must typically seek approval through which
mechanism?
A) A presidential executive order
B) A Section 1115 waiver
C) A congressional amendment
D) A Supreme Court ruling
Correct Answer: B
Rationale: Section 1115 of the Social Security Act allows the Secretary
of Health and Human Services to approve experimental, pilot, or
demonstration projects that promote the objectives of the Medicaid
program. States use these waivers to test new approaches to delivering
and paying for care. Executive orders, congressional amendments, and
