Insurance · Medicare, Medicaid, and ACA

What is Medicare, and who is it primarily designed to cover?

Correct answer

A federal health insurance program primarily for people age 65 and older, and for certain younger people with disabilities or end-stage renal disease

  1. A A program only for children
  2. B A private employer plan
  3. C A program only for low-income individuals
  4. D A federal health insurance program primarily for people age 65 and older, and for certain younger people with disabilities or end-stage renal disease

Why this is the answer

Medicare is a federal health insurance program primarily for people age 65 and older, and also for certain younger individuals with qualifying disabilities or end-stage renal disease. It has parts: Part A (hospital insurance), Part B (medical insurance for physician and outpatient services), Part C (Medicare Advantage, private plans that bundle benefits), and Part D (prescription drug coverage). Medicare is distinct from Medicaid, which is a joint federal-state program for low-income individuals. Understanding what Medicare is, whom it covers, and its basic parts is standard government-programs content on the health insurance exam.
Source: NAIC Model Outline, Medicare

Practice more questions

This question is from our Insurance License Practice Tests practice test. Take the full practice test to test your knowledge across all Medicare, Medicaid, and ACA and other topics.

Take the Health Insurance practice test →

About this topic: Medicare, Medicaid, and ACA

Medicare, Medicaid and the Affordable Care Act questions cover Medicare Parts A to D and Medigap, Medicaid eligibility, and the ACA's marketplace, essential health benefits and guaranteed-issue rules. This is one of 12 Health Insurance questions on medicare, medicaid, and aca, each with a full explanation on a single study page.

New to this exam? Our Insurance exam guide explains the format, scoring, and how to prepare.

Related questions

State-specific guides

Need information for your state? Our state guides cover local requirements, fees, and what to expect on exam day.