Quiz | September 2012

Make Sense of Medicare

Once you turn 65, Medicare pays the bulk of your medical expenses. But Medicare has its own lingo, and sometimes it can be tough to translate. Medicare also has its own calendar. You need to make some key decisions and meet specific deadlines, or you'll face the consequences: potential gaps in coverage and penalties.

Take our quiz to find out how well you know Medicare, and learn what you need to do and when.

This quiz was updated in February 2013.

Quiz

Make Sense of Medicare

Question 1 of 10

What does Medicare Part A cover?

A. Hospitalization costs
B. Doctors' charges
C. Prescription drugs
D. All the above

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Quiz

Make Sense of Medicare

Question 1 of 10

What does Medicare Part A cover?

You're right! A. Hospitalization costs is correct.

Sorry, wrong! is incorrect.

The right answer is A. Hospitalization costs.

Medicare Part A covers hospitalization costs. Medicare Part B covers doctors' visits and outpatient services. Medicare Part D covers prescription drugs. There are deductibles and co-pays for each.

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Quiz

Make Sense of Medicare

Question 2 of 10

How much does Medicare Part A cost for most people?

A. $10 per month
B. $20 per month
C. It's free.
D. The cost depends on your income.

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Quiz

Make Sense of Medicare

Question 2 of 10

How much does Medicare Part A cost for most people?

You're right! C. It's free. is correct.

Sorry, wrong! is incorrect.

The right answer is C. It's free..

For the majority of beneficiaries, there is no cost for Medicare Part A. So you should generally sign up as soon as you are eligible, even if you're still working and have coverage through your employer.

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Make Sense of Medicare

Question 3 of 10

Even if your normal retirement age for full benefits from Social Security is 66, you are eligible for Medicare at 65.

A. True
B. False

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Quiz

Make Sense of Medicare

Question 3 of 10

Even if your normal retirement age for full benefits from Social Security is 66, you are eligible for Medicare at 65.

You're right! A. True is correct.

Sorry, wrong! is incorrect.

The right answer is A. True.

For people born between 1943 and 1954, the normal retirement age is 66. But you should generally sign up for Medicare Part A when you reach age 65, even if you don't plan to sign up for Part B yet. If you or your spouse has other coverage, you may decide to wait to sign up for Part B, which charges a monthly premium, after age 65. However, once your other coverage ends, you must sign up for Part B within eight months or else you will have to pay a penalty every month for the rest of your life. You can enroll in Medicare starting three months before the month you turn 65 and up to three months after your birthday month. (Miss this window, and you'll pay higher premiums when you do eventually enroll in Part B.) Sign up online at www.socialsecurity.gov, or call Social Security at 800-772-1213.

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Quiz

Make Sense of Medicare

Question 4 of 10

What factors can drive up the cost of your Medicare Part B premiums?

A. Tax deductions and medical expenses
B. Your income
C. Age and gender
D. Health status and age

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Make Sense of Medicare

Question 4 of 10

What factors can drive up the cost of your Medicare Part B premiums?

You're right! B. Your income is correct.

Sorry, wrong! is incorrect.

The right answer is B. Your income.

The monthly charges for Medicare Part B depend on your income. Individuals with modified adjusted gross incomes of $85,000 or more ($170,000 or more for married couples) pay a Part B income-adjusted surcharge, with monthly premiums totaling $146.90 to $335.70 per person in 2013, depending on their income. People earning less than that pay a monthly premium of $104.90 in 2013.

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Quiz

Make Sense of Medicare

Question 5 of 10

According to Fidelity's 2012 study on retiree health costs, how much money will a 65-year-old couple who retired in 2012 pay out of pocket for medical expenses (not including nursing-home care) throughout retirement, even with Medicare coverage?

A. $0
B. $50,000
C. $120,000
D. $240,000
E. $540,000

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Quiz

Make Sense of Medicare

Question 5 of 10

You're right! D. $240,000 is correct.

Sorry, wrong! is incorrect.

The right answer is D. $240,000.

Even though Medicare covers the bulk of your medical expenses after you reach age 65, it leaves some big gaps: You still need to pay deductibles and co-payments for doctors' visits, hospitalization and other care. You can fill those gaps by buying a medigap policy from a private insurer. Medicare doesn't automatically cover prescription drugs. You must buy a separate Part D prescription-drug policy from one of hundreds of private plans. Or, rather than patch together Medicare, medigap, and Part D coverage, you can purchase an all-inclusive, private Medicare Advantage plan that covers both your medical and drug costs. One last caution: Medicare does not cover most long-term-care expenses, either; so consider buying long-term-care insurance.

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Quiz

Make Sense of Medicare

Question 6 of 10

There are ten basic supplemental medigap plans to cover costs that Medicare doesn't. These plans are labeled A through F and K through N. What do the different letter designations tell you?

A. Different coverage under each plan
B. Different age groups are serviced by each plan
C. Different costs are assigned to each plan

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Quiz

Make Sense of Medicare

Question 6 of 10

There are ten basic supplemental medigap plans to cover costs that Medicare doesn't. These plans are labeled A through F and K through N. What do the different letter designations tell you?

You're right! A. Different coverage under each plan is correct.

Sorry, wrong! is incorrect.

The right answer is A. Different coverage under each plan.

Medigap coverage is provided by private insurers, but each medigap plan with the same letter designation must offer exactly the same coverage -- so every Plan F, for example, provides the same coverage, no matter which insurer offers it. But the prices can vary from one company to another, so it's helpful to start your search by picking the letter plan that works best for you and then comparing prices for the same plan offered by different insurers. As long as you buy a medigap policy within six months of signing up for Medicare Part B, insurers can't reject you or charge higher rates based on your health.

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Quiz

Make Sense of Medicare

Question 7 of 10

Everyone pays the same premium for the same Part D prescription-drug plan.

A. True
B. False

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Quiz

Make Sense of Medicare

Question 7 of 10

Everyone pays the same premium for the same Part D prescription-drug plan.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

Individuals with modified adjusted gross incomes of $85,000 or higher ($170,000 or higher if married filing jointly) have to pay a high-income surcharge for their Part D prescription-drug coverage. The Part D surcharge for 2013 ranges from $11.60 to $66.40 per month, in addition to the standard premium for the prescription-drug plan they choose. They pay their regular Part D premium to their private insurance plan and pay the income-related adjustment to Medicare.

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Quiz

Make Sense of Medicare

Question 8 of 10

When is the enrollment period to switch to a different Part D prescription-drug plan for next year?

A. Anytime you want.
B. From January 1 to March 15
C. From October 15 to December 7
D. You can't switch prescription-drug plans after you first sign up.

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Quiz

Make Sense of Medicare

Question 8 of 10

When is the enrollment period to switch to a different Part D prescription-drug plan for next year?

You're right! C. From October 15 to December 7 is correct.

Sorry, wrong! is incorrect.

The right answer is C. From October 15 to December 7.

Open-enrollment season for Medicare Part D prescription-drug plans runs from October 15 to December 7, for your new coverage to begin on January 1 the following year. Coverage and costs can vary from year to year, so it's a good idea to review your options during open-enrollment period every year, even if you're happy with your current plan.

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Quiz

Make Sense of Medicare

Question 9 of 10

The Part D policy with the lowest premiums is always the cheapest option.

A. True
B. False

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Quiz

Make Sense of Medicare

Question 9 of 10

The Part D policy with the lowest premiums is always the cheapest option.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

If the Part D policy has high co-payments for your specific medications, then you could end up paying more out of pocket in the long run with a low-premium Part D policy than with a higher-premium policy that charges low co-payments. Compare the premiums, co-payments and total costs for your specific drugs for the Part D plans available in your area by using the Medicare Plan Finder, at www.medicare.gov/find-a-plan.

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Quiz

Make Sense of Medicare

Question 10 of 10

All Medicare Advantage plans let you use any doctor who accepts Medicare.

A. True
B. False

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Quiz

Make Sense of Medicare

Question 10 of 10

All Medicare Advantage plans let you use any doctor who accepts Medicare.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

There are three different kinds of Medicare Advantage policies: Private fee-for-service policies let you use any doctor who accepts Medicare, although many of those plans have left the business. Medicare HMOs only let you use doctors within the plan's network. And regional PPOs charge lower co-payments for preferred providers within a regional network. Medigap policies, however, do cover any doctor who accepts Medicare.

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Quiz

Make Sense of Medicare

Results: 0 out of 10 Right

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