All of the Following Statements About the Medicare Prescription Drug

question 21

Multiple Choice

All of the following statements about the Medicare prescription drug benefit are true EXCEPT

• A)Beneficiaries are required to pay a monthly premium for the benefit.
• B)The plan provides protection against catastrophic prescription drug expenditures.
• C)Coverage is limited to when a beneficiary is hospitalized or is a resident in a rest home.
• D)The plan has a coverage gap before a beneficiary has coverage for catastrophic costs.

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Definitions:

Ledger Accounts

Records that summarize all the transactions related to a particular aspect of a business's finances, such as assets, liabilities, equity, revenue, and expenses.

Unearned Revenues

Income received by a company for goods or services yet to be delivered or performed, considered a liability until earned.

Revenues

The total income generated by a company from its normal business operations, before any expenses are subtracted.

Debits

Entries made on the left-hand side of an account, representing an increase in assets or expenses or a decrease in liabilities, equity, or revenue.