AHIP Practice Exam

What options does Mr. Chen have regarding his Medicare coverage after dropping retiree coverage?

1. He must wait 6 months to enroll in a plan

2. He can elect a Medicare Advantage or Part D plan within 2 months

3. He cannot elect any plans until Medicare open enrollment

4. He can keep his employer coverage alongside Medicare

The correct answer is: He can elect a Medicare Advantage or Part D plan within 2 months

Mr. Chen has specific options available to him after dropping his retiree coverage, and the correct choice highlights an important part of the Medicare enrollment process. After losing retiree coverage, individuals like Mr. Chen enter a Special Enrollment Period. This period allows them to enroll in a Medicare Advantage plan or a Part D plan without facing penalties or waiting until the general enrollment period. Opting for a Medicare Advantage or Part D plan within two months of dropping retiree coverage is essential because it ensures that he maintains continuous health coverage without gaps. This special provision is designed to protect beneficiaries from being left without adequate health care options following the loss of their previous coverage. In contrast, the other options do not accurately represent the rules surrounding Medicare enrollment following the cessation of retiree benefits. The requirement to wait six months does not apply in this context, as Mr. Chen has the right to transition into new coverage immediately. Additionally, stating that he cannot elect any plans until the Medicare open enrollment contradicts the purpose of the Special Enrollment Period that he qualifies for. Finally, while it is possible for some individuals to have both employer coverage and Medicare, Mr. Chen's specific scenario involves dropping his employer's retiree plan, affecting his ability to maintain that coverage alongside Medicare.