Which of the following statements about the Medicare prescription drug benefit is (are)true?
I.Beneficiaries select a prescription drug plan and pay monthly premiums,with the premium reduced or waived for low-income beneficiaries.
II.The benefit provides first-dollar coverage of prescription drugs up to a maximum of $10,000 per year,but no coverage after $10,000.

Question

Quizplus · Accepted Answer

Statement I is true. Beneficiaries are required to select a prescription drug plan and pay monthly premiums, with the premium reduced or waived for low-income beneficiaries. Statement II is false. The benefit does not provide first-dollar coverage, and there is a coverage gap (known as the "donut hole") after a certain spending limit has been reached. In 2021, the coverage gap begins after the beneficiary and their plan have spent $4,130 on covered drugs and ends after the beneficiary has spent a total of $6,550 out of pocket. After that point, catastrophic coverage kicks in, and the beneficiary pays either 5% coinsurance or a small co-payment for the rest of the year.

Which of the Following Statements About the Medicare Prescription Drug