Arkansas Life and Health Insurance Practice Exam

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Prepare for the Arkansas Life and Health Insurance Exam. Utilize flashcards and multiple-choice questions with hints and explanations for each question. Get thoroughly ready for your certification test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is true of Medicare Part B?

Benefits are funded entirely by taxes
Benefits are funded by a combination of taxes and premium dollars and coverage is elective
Coverage is mandatory for all seniors
It provides prescription drug coverage

The correct answer is: Benefits are funded by a combination of taxes and premium dollars and coverage is elective

Medicare Part B, also known as "medical insurance," is funded by a combination of taxes and premium dollars. This means that the government and individuals both contribute to the funding of Medicare Part B. Coverage is also elective, meaning that individuals can choose to enroll in Part B or opt out, depending on their specific health needs and coverage preferences. Option A is incorrect because while taxes do fund part of Medicare, it is not the sole source of funding for Part B. Option C is also incorrect because coverage is not mandatory for all seniors - it is dependent on individual choice and circumstances. Option D is incorrect because Medicare Part B does not provide prescription drug coverage, this is covered under Medicare Part D.