Which of the Following Statements About the Medicare Prescription Drug

question 28

Multiple Choice

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.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Special Revenue Funds

Governmental funds intended to be used for specific revenue sources that are legally restricted to expenditure for particular purposes.

Debt Service Funds

Governmental funds used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

Capital Projects Funds

Funds used by governmental entities to finance the acquisition or construction of major capital facilities.

Pension Trust Fund

A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees.