Medicare 101 | Questions and Answers |
2025/2026
Most large employer health plans No, traditional Medicare does not include an out-of-pocket limit
protect enrollees from extraordinarily
high medical bills by placing an
annual limit on out-of- pocket costs.
Does the traditional Medicare
program do this?
No, traditional Medicare does not
include an out-of-pocket limit
Yes, traditional Medicare does
include an out-of-pocket limit
Approximately what share of the 15%
federal budget goes toward
Medicare?
50%
25%
15%
5%
A prescription drug benefit, Part No, Part D drug coverage does not begin automatically for all
D, was added to Medicare in Medicare beneficiaries when they sign up for Medicare
2006. Do all Medicare
beneficiaries automatically
receive the drug benefit when
their Medicare coverage
begins?
Which President thought that All of the above (President Nixon, President Reagan, and President Clinton)
health maintenance organizations
(HMOs) would help contain the
growth in health care spending?
In what year did HMO's begin their 1966
participation in the Medicare
program?
, All of the above (An Institute of Medicine study calling for enhanced
Nursing home quality standards were
Federal standards, concern about mentally ill individuals not receiving
improved by Congress in 1987 as a
active treatment, and excessive use of physical and chemical restraints in
result of:
nursing home patients)
How many Medicare claims for About one billion
physician, hospital and other services
are paid every year?
Medicare covers preventive services True
such as testing for prostate cancer,
flu and pneumonia shots,
mammograms, and bone density
scans.
In the Medicare program, what does Diagnosis-Related Group
DRG stand for?
Which category of health expense is Custodial Care
generally not covered by Medicare?
Which enrollment period General enrollment period
potentially carries a premium
penalty for Medicare Part B?
Special enrollment period
General enrollment period
None of the above; Part B does not
have a penalty
Initial enrollment period
Which program under traditional Medicare Part A - Hospital Insurance
Medicare does NOT have the monthly
cost increased by an income-related
monthly adjustment amount for
individuals whose income exceeds
certain thresholds?
If you or your spouse have not paid True
into the Social Security payroll taxes
for at least 40 quarters, you
generally are not eligible for
premium-free Medicare Part A.
As a result of the Affordable Care True
Act, Medicare beneficiaries can
access many preventive care
benefits without without cost sharing
under the Medicare program.
If you buy a Medigap policy during the True
six- month Medigap open
enrollment period you can't be
denied Medigap coverage or be
charged more for a past medical
condition.
If you don't enroll in Part B True
coverage during your initial
enrollment period and aren't
covered through an employer plan,
you risk being locked out of
2025/2026
Most large employer health plans No, traditional Medicare does not include an out-of-pocket limit
protect enrollees from extraordinarily
high medical bills by placing an
annual limit on out-of- pocket costs.
Does the traditional Medicare
program do this?
No, traditional Medicare does not
include an out-of-pocket limit
Yes, traditional Medicare does
include an out-of-pocket limit
Approximately what share of the 15%
federal budget goes toward
Medicare?
50%
25%
15%
5%
A prescription drug benefit, Part No, Part D drug coverage does not begin automatically for all
D, was added to Medicare in Medicare beneficiaries when they sign up for Medicare
2006. Do all Medicare
beneficiaries automatically
receive the drug benefit when
their Medicare coverage
begins?
Which President thought that All of the above (President Nixon, President Reagan, and President Clinton)
health maintenance organizations
(HMOs) would help contain the
growth in health care spending?
In what year did HMO's begin their 1966
participation in the Medicare
program?
, All of the above (An Institute of Medicine study calling for enhanced
Nursing home quality standards were
Federal standards, concern about mentally ill individuals not receiving
improved by Congress in 1987 as a
active treatment, and excessive use of physical and chemical restraints in
result of:
nursing home patients)
How many Medicare claims for About one billion
physician, hospital and other services
are paid every year?
Medicare covers preventive services True
such as testing for prostate cancer,
flu and pneumonia shots,
mammograms, and bone density
scans.
In the Medicare program, what does Diagnosis-Related Group
DRG stand for?
Which category of health expense is Custodial Care
generally not covered by Medicare?
Which enrollment period General enrollment period
potentially carries a premium
penalty for Medicare Part B?
Special enrollment period
General enrollment period
None of the above; Part B does not
have a penalty
Initial enrollment period
Which program under traditional Medicare Part A - Hospital Insurance
Medicare does NOT have the monthly
cost increased by an income-related
monthly adjustment amount for
individuals whose income exceeds
certain thresholds?
If you or your spouse have not paid True
into the Social Security payroll taxes
for at least 40 quarters, you
generally are not eligible for
premium-free Medicare Part A.
As a result of the Affordable Care True
Act, Medicare beneficiaries can
access many preventive care
benefits without without cost sharing
under the Medicare program.
If you buy a Medigap policy during the True
six- month Medigap open
enrollment period you can't be
denied Medigap coverage or be
charged more for a past medical
condition.
If you don't enroll in Part B True
coverage during your initial
enrollment period and aren't
covered through an employer plan,
you risk being locked out of
