America’s Health Insurance Plans (AHIP) 5 Practice Test

Which statement is true about Private Fee-for-Service plans?

They are a type of Original Medicare plan

They are a type of Medicare Advantage plan offered by private companies

They are a stand-alone prescription drug plan

Private Fee-for-Service plans are a type of Medicare Advantage plan, offered by private insurers approved to provide Medicare benefits. They’re not Original Medicare, which is the government program that covers Parts A and B directly. They aren’t stand-alone prescription drug plans—those are Part D plans sold separately to work with Original Medicare. In a PFFS plan, you can usually see any provider who accepts the plan’s terms and Medicare payment, rather than being tied to a specific network. So the true statement is that these plans are a type of Medicare Advantage plan offered by private companies.

They are a hospital-only benefit program