Question

• 11. For Medicare to cover the cost of care in the home, certain conditions must be met. These conditions include all of the following EXCEPT:
  (Search Chapter 3)
  • a. The care must be certified as medically necessary.
  • b. The care must be provided by a Medicare-certified home health agency.
  • c. The patient must be homebound.
  • d. The level of needed care must be custodial.
• 12. Which Medigap policy plan provides coverage for long-term custodial care?
  (Search Chapter 3)
  • a. Plan B
  • b. Plan C
  • c. Plan F
  • d. Medigap policies do not cover long-term custodial care.
• 13. What is the largest source for financing long-term care expenditures?
  (Search Chapter 4)
  • a. Medicaid
  • b. Medicare
  • c. private long-term care insurance plans
  • d. the disability income portion of the Social Security program
• 14. Lila Brown is placed in a nursing home for which she receives Medicaid benefits. The Browns live in a state where the monthly maintenance needs allowance for the at-home spouse is $2,500. Tom Brown's monthly income from a combination of pension and Social Security is $2,300. Lila's personal income consists of $1,200 in Social Security. How much of Tom's current income must go toward paying for his wife's long-term medical care?
  (Search Chapter 4)
  • a. $0
  • b. $300
  • c. $1,600
  • d. $2,000
• 15. The Kramers live in a state with a monthly maintenance needs allowance of $2,500. Jill Kramer becomes institutionalized and applies for Medicaid. Her total monthly income is $1,100 from Social Security. Jack Kramer, who remains in the home, receives a monthly pension of $500 plus $1,300 in Social Security. How much of Jill's own income will go toward paying for her medical care?
  (Search Chapter 4)
  • a. $0
  • b. $600
  • c. $1,000
  • d. virtually all of it
• 16. All of the following assets are exempt from Medicaid's spend-down requirement EXCEPT:
  (Search Chapter 4)
  • a. a life insurance policy's $50,000 cash surrender value
  • b. a revocable $1,000 burial contract
  • c. a $1,000 antique china cabinet
  • d. a wedding ring worth $8,000
• 17. The typical purchaser of long-term care insurance is between which ages?
  (Search Chapter 5)
  • a. 75 and 85
  • b. 55 and 60
  • c. 45 and 55
  • d. 35 and 45
• 18. Oliver's LTC policy covers only home and community-based care and pays nothing for treatment in a skilled nursing or other facility. What kind of LTC policy does Oliver own?
  (Search Chapter 5)
  • a. facility-challenged
  • b. substandard
  • c. tier 1
  • d. noncomprehensive
• 19. Liza owns a tax-qualified long-term care policy. All of the following statements are true EXCEPT:
  (Search Chapter 5)
  • a. her coverage will continue as long as she pays the premiums when they're due
  • b. the premiums she pays for the policy are eligible for the medical expense tax deduction
  • c. either a cognitive impairment or ADL impairment will trigger payment of policy benefits
  • d. she was required to purchase inflation protection
• 20. Brenda, 72, is in fairly poor health, though she is determined to remain at home for as long as possible. As it is, Brenda requires the services of a visiting nurse several times a week as well as help with several activities of daily living. Brenda lives solely on Social Security and has about $15,000 in savings. What is the best way for someone in Brenda's situation to pay for the cost of her care?
  (Search Chapter 5)
  • a. Medicaid
  • b. Medicare
  • c. long-term care insurance
  • d. disability insurance

Answer 1

11. d) The level of needed care must be custodial.

12. d) Medigap policies do not cover long-term custodial care.

13. a) Medicaid

14.a) $0 as the MMNA is higher than the income of the community spouse