Certified Application Counselor Practice Test

Under what condition can consumers not enroll in a Medigap policy?

1. If they have a holistic health plan

2. If they are eligible for Medicaid

3. If they are younger than 65

4. If they have a private insurance plan

The correct answer is: If they are eligible for Medicaid

Consumers cannot enroll in a Medigap policy if they are eligible for Medicaid because Medigap is designed to supplement Medicare coverage. Medicaid is a program that provides health coverage to low-income individuals, often covering many of the costs that Medigap would typically handle for Medicare beneficiaries. Therefore, if someone qualifies for both Medicare and Medicaid, they would not be able to purchase a Medigap policy, as their Medicaid benefits are intended to cover the costs that Medigap would otherwise help with. This context clarifies why the other options do not prevent enrollment. For instance, having a holistic health plan or a private insurance plan does not disqualify someone from enrolling in Medigap, nor does being younger than 65 if they are already eligible for Medicare. Therefore, eligibility for Medicaid is the key condition that restricts Medigap enrollment.