CRPC | Navigating Health Care Options in
Retirement Questions with Complete
Solutions
Which one of the following is not considered to be a qualified medical expense for purposes of
the health savings account rules?
A) Premium payments for Medicare Part B
B) Premium payments for Medicare Part A
C) Premium payments for long-term care insurance
D) Premium payments for a Medigap policy Answer: D
Premium payments for a Medigap policy are not considered qualified medical expenses for
purposes of the health savings account rules.
Which one of the following is not a feature of health savings accounts (HSAs)?
A) Individuals who are enrolled in Medicare can continue to use HSA funds for qualified
medical expenses.
B) Funds may be used to pay for qualified medical expenses during retirement.
C) Individuals who are enrolled in Medicare can continue to make contributions.
D) Contributions are tax-deductible. Answer: C
,Individuals who are enrolled in Medicare are not eligible to contribute to an HSA. Otherwise,
contributions are tax-deductible and withdrawals used to pay for qualified medical expenses are
tax free. Individuals enrolled in Medicare may use funds remaining in an HSA, but can no longer
make contributions to one.
All of the following are true regarding Medicare except
A) Medicare Advantage plans are available as an alternative to traditional Medicare.
B) enrollment during a "special enrollment period" requires documentation that you were
previously enrolled in an employer-sponsored plan.
C) if you miss your initial enrollment period you will face a one-time penalty equal to 10% of
your premium.
D) Medicare is a social insurance program. --C
If you miss your initial enrollment period, you will face a cumulative penalty equal to 10% of
your premium for every 12-month period during which you could have signed up but didn't. All
other statements are true.
Which one of the following is correct regarding Medicare Part D?
A) The "donut hole" accounts for generic and name brand drugs in exactly the same way in
regards to out-of-pocket
, B) These plans are not available through private companies under contract with Medicare.
C) Medicare Part D is often purchased by individuals choosing Medicare Advantage Plans to add
coverage for prescription drugs.
D) Individuals can select from among plans labeled A through N. --A
These plans are available through private companies under contract with Medicare.
The applicable premium is means-tested.
Medicare Part D is often included in Medicare Advantage plans and not purchased in addition to
them.
The donut hole only gives credit for actual out-of-pocket expenses for generic drugs. Name
brand drugs, however, credit the individual for both the out-of-pocket expenses and also a
manufacturer discount. This lowers the actual amount paid by the individual when the "out-of-
pocket maximum" is reached.
All of the following are true regarding Medicare Advantage plans except:
A)individuals with end-stage renal disease (ESRD) are not eligible.
B)beneficiaries must live in the service area of a health plan.
C)to qualify, the beneficiary normally must be covered by Medicare Part A. Coverage for Part B
is optional.
D)Medigap plans are not available to help with the out-of-pocket costs Medicare Advantage
plans leave to individuals. --C
Retirement Questions with Complete
Solutions
Which one of the following is not considered to be a qualified medical expense for purposes of
the health savings account rules?
A) Premium payments for Medicare Part B
B) Premium payments for Medicare Part A
C) Premium payments for long-term care insurance
D) Premium payments for a Medigap policy Answer: D
Premium payments for a Medigap policy are not considered qualified medical expenses for
purposes of the health savings account rules.
Which one of the following is not a feature of health savings accounts (HSAs)?
A) Individuals who are enrolled in Medicare can continue to use HSA funds for qualified
medical expenses.
B) Funds may be used to pay for qualified medical expenses during retirement.
C) Individuals who are enrolled in Medicare can continue to make contributions.
D) Contributions are tax-deductible. Answer: C
,Individuals who are enrolled in Medicare are not eligible to contribute to an HSA. Otherwise,
contributions are tax-deductible and withdrawals used to pay for qualified medical expenses are
tax free. Individuals enrolled in Medicare may use funds remaining in an HSA, but can no longer
make contributions to one.
All of the following are true regarding Medicare except
A) Medicare Advantage plans are available as an alternative to traditional Medicare.
B) enrollment during a "special enrollment period" requires documentation that you were
previously enrolled in an employer-sponsored plan.
C) if you miss your initial enrollment period you will face a one-time penalty equal to 10% of
your premium.
D) Medicare is a social insurance program. --C
If you miss your initial enrollment period, you will face a cumulative penalty equal to 10% of
your premium for every 12-month period during which you could have signed up but didn't. All
other statements are true.
Which one of the following is correct regarding Medicare Part D?
A) The "donut hole" accounts for generic and name brand drugs in exactly the same way in
regards to out-of-pocket
, B) These plans are not available through private companies under contract with Medicare.
C) Medicare Part D is often purchased by individuals choosing Medicare Advantage Plans to add
coverage for prescription drugs.
D) Individuals can select from among plans labeled A through N. --A
These plans are available through private companies under contract with Medicare.
The applicable premium is means-tested.
Medicare Part D is often included in Medicare Advantage plans and not purchased in addition to
them.
The donut hole only gives credit for actual out-of-pocket expenses for generic drugs. Name
brand drugs, however, credit the individual for both the out-of-pocket expenses and also a
manufacturer discount. This lowers the actual amount paid by the individual when the "out-of-
pocket maximum" is reached.
All of the following are true regarding Medicare Advantage plans except:
A)individuals with end-stage renal disease (ESRD) are not eligible.
B)beneficiaries must live in the service area of a health plan.
C)to qualify, the beneficiary normally must be covered by Medicare Part A. Coverage for Part B
is optional.
D)Medigap plans are not available to help with the out-of-pocket costs Medicare Advantage
plans leave to individuals. --C
