17 Free Utah Life & Health Practice Questions: Medicare, Long-Term Care and Tax (2026)

Question 1 (Chapter 8)

A Utah resident who is eligible for Medicare due to end-stage renal disease (ESRD) enrolls in Original Medicare. Which statement accurately describes her coverage under Part A and Part B?

• A) Part A covers inpatient hospital services related to ESRD, but Part B does not cover outpatient dialysis services.
• B) Part A covers home health services for ESRD, but Part B does not cover any ESRD-related services.
• C) Both Part A and Part B require her to pay a monthly premium for ESRD coverage.
• D) Part A covers inpatient hospital stays, and Part B covers outpatient dialysis services and doctor visits related to ESRD.

Question 2 (Chapter 8)

Under the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA), what restriction applies to Utah insurance producers when marketing Medicare Advantage or Part D plans to prospective clients?

• A) Producers must complete 3 hours of Medicare-specific training before discussing any Medicare product with a client.
• B) Producers are allowed to combine the sale of a Medicare Advantage plan with the sale of a life insurance policy in the same appointment without restriction.
• C) Producers must disclose their commission structure to the client before presenting any plan options.
• D) Producers must obtain a signed scope-of-appointment form from the client before discussing plan details during a marketing appointment.

Question 3 (Chapter 8)

A Utah resident who is self-employed as a sole proprietor pays $4,800 annually for her own health insurance premiums. How does she typically treat these premiums for federal income tax purposes?

• A) She can deduct the premiums as an adjustment to income on Form 1040, regardless of whether she itemizes deductions.
• B) She can deduct the premiums as an itemized medical expense on Schedule A, subject to the 7.5% of adjusted gross income floor.
• C) She cannot deduct the premiums at all because she is not incorporated.
• D) She must treat the premiums as a business expense on Schedule C, which reduces her self-employment tax liability.

Question 4 (Chapter 8)

A Utah employer offers a Health Reimbursement Account (HRA) to its employees. Which statement accurately describes how the HRA is treated for federal income tax purposes?

• A) Employees must include the value of HRA contributions in their taxable income, but reimbursements for medical expenses are tax-free.
• B) Employees can make pre-tax contributions to the HRA through payroll deduction, similar to a flexible spending account (FSA).
• C) Employer contributions to the HRA are deductible by the employer, and reimbursements for qualified medical expenses are excluded from the employee's taxable income.
• D) The HRA is funded by employee pre-tax contributions, and the employer administers the account for a fee.

Question 5 (Chapter 8)

A Utah resident who is 67 years old and enrolled in Original Medicare Part B wants to purchase a Medicare Supplement (Medigap) policy. She missed her initial Medigap Open Enrollment Period. Which of the following situations would trigger a guaranteed-issue right for her to buy a Medigap policy without medical underwriting in Utah?

• A) She decides she wants a plan with lower premiums and wants to switch from Plan G to Plan N.
• B) She moves to a new state and wants to keep the same Medigap plan she had in Utah.
• C) She loses her employer-sponsored group health coverage that was paying secondary to Medicare.
• D) She is diagnosed with a new chronic condition and wants more comprehensive coverage.

Question 6 (Chapter 8)

A Utah resident establishes a Health Savings Account (HSA) and contributes $3,000 for the year. She uses $800 from the HSA to pay for qualified medical expenses. Which statement accurately describes the federal tax treatment of her HSA?

• A) The $3,000 contribution is deductible, the $800 withdrawal for qualified medical expenses is tax-free, and earnings grow tax-free.
• B) The $3,000 contribution is deductible, the $800 withdrawal is taxable, and earnings grow tax-deferred.
• C) The $3,000 contribution is not deductible, but the $800 withdrawal is tax-free and earnings grow tax-free.
• D) The $3,000 contribution is deductible, the $800 withdrawal is tax-free, but earnings are subject to annual taxation.

Question 7 (Chapter 8)

A Utah resident purchases a tax-qualified long-term care (LTC) insurance policy. Which of the following is a requirement for the policy to be considered tax-qualified under federal law?

• A) The policy must require the insured to be unable to perform at least two activities of daily living (ADLs) or have cognitive impairment to trigger benefits.
• B) The policy must include a return-of-premium rider upon death or lapse.
• C) The policy must pay benefits only if the insured is receiving care in a licensed nursing facility.
• D) The policy must have a maximum benefit period of no more than two years.

Question 8 (Chapter 8)

A 66-year-old Utah resident is enrolled in Original Medicare Part A and Part B. She is considering purchasing a Medicare Supplement (Medigap) policy. She has a pre-existing condition and is concerned about being denied coverage. She applies for a Medigap Plan G during her Medigap Open Enrollment Period. Which statement accurately describes the insurer's obligations under Utah law and federal regulations?

• A) The insurer may deny her application based on her pre-existing condition because Medigap policies are subject to full medical underwriting in Utah.
• B) The insurer must issue the policy but may impose a pre-existing condition waiting period of up to 6 months before covering expenses related to that condition.
• C) The insurer must issue the policy and cannot impose any pre-existing condition waiting period because she is applying during her Medigap Open Enrollment Period.
• D) The insurer may charge her a higher premium based on her health status but cannot deny coverage during the Open Enrollment Period.

Question 9 (Chapter 8)

A Utah resident is eligible for Medicare due to receiving Social Security disability benefits. After how many months of receiving these benefits does his Medicare eligibility begin?

• A) Immediately upon approval of disability benefits
• B) After 6 months of receiving disability benefits
• C) After 12 months of receiving disability benefits
• D) After 24 months of receiving disability benefits

Question 10 (Chapter 8)

A Utah resident who is self-employed as a sole proprietor has a net profit of $50,000 for the year. She pays $6,000 in health insurance premiums for herself and her family. She also has a Health Savings Account (HSA) and contributes $3,000 to it. Which statement accurately describes the federal income tax treatment of these items?

• A) The $6,000 health insurance premiums are deductible only as an itemized deduction on Schedule A subject to the 7.5% AGI floor, and the $3,000 HSA contribution is deductible as an adjustment to income.
• B) The $6,000 health insurance premiums are not deductible because she is eligible for an employer-sponsored plan through her spouse, and the $3,000 HSA contribution is deductible as an adjustment to income.
• C) The $6,000 health insurance premiums are deductible as an adjustment to income (above-the-line) up to the amount of net profit, and the $3,000 HSA contribution is also deductible as an adjustment to income.
• D) The $6,000 health insurance premiums are deductible as a business expense on Schedule C, and the $3,000 HSA contribution is not deductible because she is self-employed.

Question 11 (Chapter 8)

A Utah resident is enrolled in a high-deductible health plan (HDHP) and has a Health Savings Account (HSA). She turns 65 in July and enrolls in Medicare Part A (premium-free) and Part B. She wants to continue contributing to her HSA. Which statement accurately describes her eligibility to contribute to the HSA after enrolling in Medicare?

• A) She can continue to contribute to her HSA as long as she remains enrolled in the HDHP, because Medicare Part A is premium-free and does not count as 'other coverage'.
• B) She can continue to contribute to her HSA at the full annual limit because she is still working and has an HDHP through her employer.
• C) She can contribute to her HSA for the months before she enrolled in Medicare (January through June), but cannot contribute for any month she is enrolled in Medicare (July through December).
• D) She can contribute to her HSA only if she delays enrollment in Medicare Part B and only enrolls in Part A.

Question 12 (Chapter 8)

A Utah employer offers a Health Savings Account (HSA) to employees enrolled in a high-deductible health plan (HDHP). The employer contributes $500 per year to each employee's HSA. An employee also contributes $2,000 pre-tax via payroll deduction. The employee uses $1,200 from the HSA to pay for qualified medical expenses. Which statement accurately describes the federal tax treatment of these transactions?

• A) The employer's $500 contribution is excluded from the employee's income, the employee's $2,000 contribution is deductible (or pre-tax), and the $1,200 withdrawal for qualified expenses is tax-free.
• B) The employer's $500 contribution is taxable to the employee, the employee's $2,000 contribution is deductible, and the $1,200 withdrawal is taxable.
• C) The employer's $500 contribution is excluded from the employee's income, the employee's $2,000 contribution is not deductible because the employer also contributed, and the $1,200 withdrawal is tax-free.
• D) The employer's $500 contribution is taxable to the employee, the employee's $2,000 contribution is deductible, and the $1,200 withdrawal is tax-free only if the employee is over age 65.

Question 13 (Chapter 8)

A 66-year-old Utah resident is enrolled in Medicare Part A (premium-free) and Part B. She is covered by her former employer's retiree health plan, which pays secondary to Medicare. She wants to purchase a Medicare Supplement (Medigap) Plan N. The insurer informs her that because she has retiree coverage, she may not need Medigap. Which statement is TRUE regarding her right to purchase Medigap Plan N?

• A) She cannot purchase a Medigap policy while she has employer retiree coverage because it would be duplicate coverage prohibited by Utah law.
• B) She has a guaranteed-issue right to buy Medigap Plan N if she is within her Medigap Open Enrollment Period, regardless of her retiree coverage.
• C) She must first terminate her retiree coverage before applying for Medigap, or the application will be denied.
• D) The insurer can deny her Medigap application based on her health status because retiree coverage disqualifies her from open enrollment protections.

Question 14 (Chapter 8)

A Utah insurance producer is discussing Medicare Advantage (Part C) plans with a client who is enrolled in Original Medicare. Which statement accurately describes a key feature of Medicare Advantage plans?

• A) Medicare Advantage plans are prohibited from offering any benefits beyond what Original Medicare covers.
• B) Enrollees in Medicare Advantage plans must also purchase a separate Medicare Supplement (Medigap) policy to cover out-of-pocket costs.
• C) Medicare Advantage plans are administered directly by the federal government, not by private insurance companies.
• D) Medicare Advantage plans must cover at least the same benefits as Original Medicare but may offer additional benefits such as vision, hearing, or dental coverage.

Question 15 (Chapter 8)

A 68-year-old Utah resident is enrolled in Original Medicare Part A and Part B. She has a Medicare Supplement (Medigap) Plan F (purchased before 2020). She is hospitalized for 150 days in a single benefit period. Which of the following costs is she responsible for paying out-of-pocket under her Medigap Plan F?

• A) The Part A deductible for the benefit period.
• B) Nothing; Plan F covers all Part A cost-sharing for a 150-day hospitalization.
• C) The Part A coinsurance for days 61-90.
• D) The Part A coinsurance for lifetime reserve days (days 91-150).

Question 16 (Chapter 8)

A 68-year-old Utah resident is enrolled in a Medicare Advantage (Part C) HMO plan. On February 10, she decides to disenroll from her MA plan and return to Original Medicare. She applies for a Medicare Supplement (Medigap) Plan G on February 15. Under federal rules, does she have a guaranteed-issue right to purchase Medigap Plan G without medical underwriting?

• A) Yes, because she is within the Medicare Advantage Open Enrollment Period (January 1 – March 31)
• B) No, the Medicare Advantage Open Enrollment Period does not trigger a federal guaranteed-issue right for Medigap; she would be subject to medical underwriting unless she qualifies for another guaranteed-issue situation
• C) Yes, because disenrolling from an MA plan during the MA OEP triggers a federal guaranteed-issue right for Medigap
• D) No, she must wait until the Annual Election Period (October 15 – December 7) to disenroll and then apply for Medigap with guaranteed issue

Question 17 (Chapter 8)

A 66-year-old Utah resident is enrolled in Original Medicare Part A and Part B. She has a Medicare Supplement (Medigap) Plan K. She is hospitalized for inpatient care. Which of the following best describes how Medigap Plan K covers her hospitalization costs under Original Medicare?

• A) Plan K covers 100% of the Medicare Part A deductible and all coinsurance costs.
• B) Plan K covers 100% of coinsurance after the deductible is met.
• C) Plan K covers 50% of the Medicare Part A deductible, 50% of coinsurance, and 50% of the first three pints of blood.
• D) Plan K covers the Medicare Part A deductible in full and 75% of coinsurance.