Nurse Executive Certification Practice Exam

A Medicare Advantage Plan is best described as which of the following?

1. A government-operated health plan

2. A plan approved by Medicare and administered by private companies

3. A plan exclusively for low-income individuals

4. A public health insurance option

The correct answer is: A plan approved by Medicare and administered by private companies

A Medicare Advantage Plan is best described as a plan that is approved by Medicare and administered by private companies. This option accurately reflects how these plans operate within the Medicare system. Medicare Advantage Plans, also known as Part C, are offered by private insurers that have contracts with Medicare to provide at least the same benefits as Original Medicare (Part A and Part B). These plans often include additional benefits such as vision, dental, and wellness services, which are not covered under Original Medicare. The private companies manage the plans, establishing their own networks of providers and may use different cost-sharing methods, while still complying with Medicare regulations. In contrast, the other choices depict different characteristics that do not align with the essence of Medicare Advantage Plans. Government-operated health plans refer to systems such as Medicaid or government-run healthcare initiatives, while plans exclusively for low-income individuals are more representative of Medicaid rather than Medicare Advantage. A public health insurance option typically refers to a government-led insurance choice that competes with private insurance in the marketplace, which does not apply to the structure or function of Medicare Advantage Plans.