AARP Medicare Supplement Insurance Plans Certification Practice Test

High-deductible Medicare Supplement plans are characterized by the requirement of a higher deductible before the insurance coverage begins. This means that policyholders must pay a specified amount out-of-pocket for their healthcare expenses before the plan starts to cover costs. Once the deductible is met, the plan often covers a larger portion of the medical expenses, similar to standard Medicare Supplement plans. This option can be appealing to individuals who want lower monthly premiums and are willing to take on more financial responsibility upfront.

In terms of the other options, high-deductible plans generally do not have high premiums; in fact, they typically feature lower premiums compared to other Medicare Supplement plans because consumers are accepting a higher initial cost before benefits kick in. Additionally, these plans do not usually provide coverage for prescription drugs, as that benefit is generally provided under Medicare Part D. Lastly, stating that they automatically cover all Medicare services is misleading; while they are designed to complement Medicare, they generally cover many, but not all, of the costs associated with Medicare services after the deductible is met.