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Social Insurance: Medicare, Medicaid and Social Security: Practice Questions

20 free practice questions with explanations. Pick an answer for each, then check your score.

Exam weight: 6 of 100 scored questions on the Life and Health general knowledge exam. Updated 2026-11-04.

Quick study guide

These questions test the government programs that private health, disability and life insurance fit around. Know who each program covers, what it pays for, and when benefits start. Dollar amounts such as premiums and deductibles change every year and are not tested here.

Medicare

Medicare is federal health insurance for people 65 or older, and for some younger people: those who have received Social Security disability benefits for 24 months, people with ALS (covered as soon as disability benefits start) and people with End-Stage Renal Disease (permanent kidney failure needing dialysis or a transplant). Most people pay no Part A premium because they or their spouse paid Medicare taxes for about 10 years. The first chance to sign up is a 7-month Initial Enrollment Period around the 65th birthday.

Part	What it covers	Who provides it
A (Hospital Insurance)	Inpatient hospital, skilled nursing facility, hospice, some home health care	Medicare
B (Medical Insurance)	Doctors, outpatient care, durable medical equipment, many preventive services	Medicare
C (Medicare Advantage)	All Part A and Part B benefits, usually drug coverage, often extras such as dental or vision	Private plans approved by Medicare
D (Drug coverage)	Prescription drugs	Private plans approved by Medicare

Original Medicare is Parts A and B. A Medigap (Medicare supplement) policy helps pay Original Medicare's deductibles, coinsurance and copayments; plans are standardized by letter, and the best time to buy is the 6-month Medigap open enrollment period, when insurers cannot refuse a person because of health problems. Medicare does not pay for custodial long-term care.

Medicaid

Medicaid is a joint federal and state program for people with limited income and resources, so it is means-tested; Medicare is not. Each state sets its own eligibility rules within federal guidelines. Medicaid covers nursing home and other long-term care that Medicare does not. For people who have both programs, Medicare pays first and Medicaid pays last.

Social Security disability and survivor benefits

Workers earn credits (quarters of coverage), up to four a year. Forty credits make a worker fully insured. For disability benefits, a worker must be unable to do any substantial gainful work because of an impairment expected to last at least 12 months or to result in death, and benefits begin only after a five-month waiting period. When an insured worker dies, survivor benefits can go to a widow or widower (from age 60, or 50 if disabled), to a parent caring for the worker's child under 16, and to unmarried children under 18 (19 if still in high school). A one-time $255 lump-sum death payment also goes to a surviving spouse who lived with the worker.

Practice questions

Which of these services is covered by Medicare Part A?
1. A.Doctor visits in a medical office
2. B.Durable medical equipment such as a walker
3. C.Outpatient prescription drugs
4. D.Inpatient hospital care and hospice care
Show answer
Answer: D. Part A (Hospital Insurance) helps cover inpatient hospital care, skilled nursing facility care, hospice and home health care. Doctor visits and durable medical equipment fall under Part B, and outpatient prescription drugs are covered through Part D.
Source: Texas content outline VII.A; Medicare.gov: Parts of Medicare
Medicare Part B (Medical Insurance) primarily helps pay for:
1. A.Prescription drugs bought at a retail pharmacy
2. B.Inpatient hospital stays
3. C.Doctors' services, outpatient care and many preventive services
4. D.Custodial care in a nursing home
Show answer
Answer: C. Part B covers services from doctors and other providers, outpatient care, durable medical equipment, home health care and many preventive services such as screenings and vaccines. Inpatient hospital stays are Part A, retail prescriptions are Part D, and custodial nursing home care is not covered by Medicare at all.
Source: Texas content outline VII.A; Medicare.gov: Parts of Medicare
Which statement about Medicare Advantage (Part C) is correct?
1. A.Medicare-approved private plans offer it, and it includes all Part A and B benefits.
2. B.It is a Medigap policy sold directly to retirees by the federal government.
3. C.It is a government-run plan that replaces Part D drug coverage for everyone.
4. D.It can be bought on its own without enrolling in either Part A or Part B.
Show answer
Answer: A. Medicare Advantage plans are run by private companies approved by Medicare. They bundle Part A and Part B benefits, usually include drug coverage, and often add extras such as vision or dental. A person must have both Part A and Part B to join, and Medigap is a separate product that works only with Original Medicare.
Source: Texas content outline VII.A; Medicare.gov: Parts of Medicare; Medicare.gov: Your coverage options
Medicare Part D prescription drug coverage is:
1. A.Included as a standard benefit in every Medigap policy sold today
2. B.Available only to people who also qualify for their state's Medicaid program
3. C.Provided automatically by Medicare to everyone at age 65 at no extra cost
4. D.Sold by Medicare-approved private companies, alone or within a Medicare Advantage plan
Show answer
Answer: D. Part D plans are run by private insurers that follow Medicare's rules. A person can join a stand-alone drug plan alongside Original Medicare or get drug coverage through a Medicare Advantage plan. Part D is optional, and Medigap policies generally do not cover prescription drugs.
Source: Texas content outline VII.A; Medicare.gov: Parts of Medicare; Medicare.gov: Your coverage options
Why do most people pay no monthly premium for Medicare Part A?
1. A.They or a spouse paid Medicare taxes while working, generally 10+ years.
2. B.Part A is premium-free only for people whose incomes are low.
3. C.Their monthly Part B premium already includes the cost of Part A.
4. D.Their former employer pays the Part A premium after they retire.
Show answer
Answer: A. Medicare says Part A costs $0 for most people because they paid Medicare taxes long enough while working, generally at least 10 years; this is called premium-free Part A. People who do not qualify may be able to buy Part A. Income does not determine whether Part A is premium-free.
Source: Texas content outline VII.A; Medicare.gov: What does Medicare cost?
A 52-year-old has been receiving Social Security disability benefits. When does she become eligible for Medicare?
1. A.After she has received disability benefits for 24 months
2. B.Only when she reaches age 65
3. C.After a 90-day elimination period
4. D.Immediately when disability benefits begin
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Answer: A. People under 65 who get Social Security disability benefits are enrolled in Medicare automatically after 24 months of disability benefits (or at 65, if sooner). The main exception is ALS, which qualifies as soon as disability benefits begin. An elimination period is a private disability insurance term.
Source: Texas content outline VII.A; Medicare.gov: Other paths to Medicare; 42 U.S.C. § 426(b) (Medicare for disabled individuals)
A 48-year-old is diagnosed with amyotrophic lateral sclerosis (ALS) and is approved for Social Security disability benefits. When does Medicare coverage begin?
1. A.As soon as Social Security disability benefits begin
2. B.Only after a kidney transplant
3. C.After 24 months of disability benefits, like other disabilities
4. D.At age 65
Show answer
Answer: A. Medicare waives the usual 24-month wait for people with ALS: they get Medicare automatically as soon as they start getting disability benefits. Other disabilities require 24 months of disability benefits first. A kidney transplant relates to Medicare eligibility for End-Stage Renal Disease, not ALS.
Source: Texas content outline VII.A; Medicare.gov: Getting Social Security benefits before 65; 42 U.S.C. § 426(h) (waiver of waiting period for ALS)
A 45-year-old has permanent kidney failure and needs regular dialysis. Which statement is true?
1. A.He may qualify for Medicare because of End-Stage Renal Disease (ESRD).
2. B.He must first receive 24 months of Social Security disability benefits.
3. C.He qualifies for Medigap but not Medicare.
4. D.He cannot get Medicare until age 65.
Show answer
Answer: A. Medicare covers some people under 65 with End-Stage Renal Disease, defined as permanent kidney failure that requires regular dialysis or a kidney transplant. ESRD has its own entitlement rules, separate from the 24-month disability route. Medigap is only a supplement to Medicare, not a substitute for it.
Source: Texas content outline VII.A; Medicare.gov: End-Stage Renal Disease (ESRD)
A person's Medicare Initial Enrollment Period when turning 65 lasts:
1. A.12 months, starting on the 65th birthday
2. B.7 months, starting 3 months before the birthday month
3. C.30 days, starting on the 65th birthday
4. D.January 1 through March 31 of each year
Show answer
Answer: B. The Initial Enrollment Period lasts 7 months: it starts 3 months before the month a person turns 65, includes that month, and ends 3 months after it. January 1 to March 31 is the General Enrollment Period for people who missed their first chance, and late sign-up can bring a Part B late enrollment penalty.
Source: Texas content outline VII.A; Medicare.gov: When does Medicare coverage start?
Which statement about Medicare Supplement Insurance (Medigap) is true?
1. A.It is a Medicare Advantage plan run by the federal government.
2. B.It is designed to cover long-term custodial care in a nursing home.
3. C.Benefits in a plan with the same letter differ from one insurance company to another.
4. D.It is sold by private insurers and helps pay the deductibles, coinsurance and copayments of Original Medicare.
Show answer
Answer: D. Medigap is private insurance that fills cost-sharing gaps in Original Medicare, so a person generally needs both Part A and Part B to buy it. Plans are standardized: in most states a plan with a given letter has the same benefits from every insurer, and price is the only difference. Medigap generally does not cover long-term care.
Source: Texas content outline VII.A and V.D; Medicare.gov: Get Medigap basics; Medicare.gov: Your coverage options
During the Medigap open enrollment period, an applicant:
1. A.Can be turned down by the insurer because of pre-existing health problems
2. B.Can enroll only if their income is below the state's Medicaid limit
3. C.Must already be enrolled in a Medicare Advantage plan to be eligible
4. D.Can buy any Medigap policy, and pre-existing conditions can't be used to deny coverage
Show answer
Answer: D. Medigap open enrollment is a one-time 6-month period that starts the first month a person has Part B and is 65 or older. During it the insurer cannot deny coverage because of pre-existing health problems; afterward a policy may be refused or cost more. Medigap works with Original Medicare, not Medicare Advantage, and has no income test.
Source: Texas content outline VII.A and V.D; Medicare.gov: Get Medigap basics
An 80-year-old needs ongoing help with bathing and dressing in a nursing home but does not need skilled care. Which program may pay for this custodial care if she meets its financial rules?
1. A.Medicaid
2. B.Medicare Part A
3. C.Medicare Part D
4. D.A Medigap policy
Show answer
Answer: A. Medicare does not pay for long-term custodial care, the help with activities of daily living such as bathing and dressing, and Medigap does not cover it either. Medicaid can, for people who meet their state's eligibility rules. Medicare Part A covers skilled nursing facility care, which is different from custodial care.
Source: Texas content outline VII.A–B; Medicare.gov: Long-term care
Which statement best describes Medicaid?
1. A.A private insurance plan that supplements Medicare
2. B.A federal program for everyone age 65 or older, regardless of income
3. C.A joint federal and state program for people with limited income and resources
4. D.A Social Security cash benefit for disabled workers
Show answer
Answer: C. Medicaid is jointly funded by the federal government and the states and covers certain people with low income and limited resources, so it is means-tested. Eligibility rules differ from state to state. Medicare, by contrast, is a federal program based on age, disability or ESRD rather than income.
Source: Texas content outline VII.B; Medicare.gov: Medicaid; HealthCare.gov: Medicaid and CHIP coverage
A person qualifies for both Medicare and full Medicaid benefits. When she receives a service that Medicare covers:
1. A.Each program pays half the bill.
2. B.She must choose one program and give up the other.
3. C.Medicare pays first and Medicaid pays last.
4. D.Medicaid pays first and Medicare pays last.
Show answer
Answer: C. People with both programs are called dual eligibles. Medicare pays first for Medicare-covered services, and Medicaid pays last, after Medicare and any other insurance. Full-benefit Medicaid also pays the person's Part B premium and may cover some of Medicare's cost-sharing.
Source: Texas content outline VII.B; Medicare.gov: Medicaid
Under Social Security, a worker is considered disabled only if:
1. A.He can't do any substantial gainful work because of an impairment expected to last 12 months or end in death.
2. B.He cannot do his own job, even though he could still do some other kind of work.
3. C.He has been unable to work for at least 30 consecutive days because of illness.
4. D.His doctor certifies that he has a partial disability that limits his hours.
Show answer
Answer: A. The Social Security Act defines disability as the inability to engage in any substantial gainful activity because of a medically determinable impairment expected to result in death or to last at least 12 months. The worker must be unable to do both his previous work and other work that exists in the national economy, considering age, education and experience. This is much stricter than an own-occupation definition in private disability insurance.
Source: Texas content outline VII.C; 42 U.S.C. § 423(d) (definition of disability)
How long is the waiting period before Social Security disability benefits can begin?
1. A.Twenty-four months of benefit entitlement
2. B.Five full consecutive calendar months
3. C.Twelve months from the onset of disability
4. D.Thirty days from the onset of disability
Show answer
Answer: B. The Social Security Act sets the waiting period as five consecutive calendar months of disability, and benefits are paid starting after it ends. The 12-month figure is part of the definition of disability (how long the impairment must be expected to last), and 24 months is the wait for Medicare after disability benefits start. People with ALS are exempt from the waiting period.
Source: Texas content outline VII.C; 42 U.S.C. § 423(a) and (c)(2) (waiting period)
Which statement about Social Security work credits (quarters of coverage) is correct?
1. A.A worker can earn an unlimited number of credits in a single year.
2. B.Credits expire if they are not used within five years.
3. C.A worker can earn up to four credits a year, and 40 credits make a worker fully insured.
4. D.Credits are earned only by working for the federal government.
Show answer
Answer: C. No more than four quarters of coverage can be credited to any calendar year, and a worker with 40 quarters of coverage is fully insured. Fewer credits may be enough in some cases, for example for younger workers. Credits come from covered work in private and public jobs, and the amount of earnings needed for one credit changes each year.
Source: Texas content outline VII.C; 42 U.S.C. § 413(a) (quarters of coverage); 42 U.S.C. § 414(a) (fully insured)
A worker dies having earned six credits, all in the three years before his death. He is currently insured but not fully insured. Who can still receive monthly Social Security survivor benefits on his record?
1. A.His widow at age 60, even if they had no children together
2. B.Nobody, because he was not fully insured when he died
3. C.His unmarried minor children, and his spouse while caring for them
4. D.His adult children who are working full time and self-supporting
Show answer
Answer: C. Currently insured status means at least six quarters of coverage in the 13-quarter period ending with the quarter of death. It is enough for child's benefits and for the mother's or father's benefit paid to a surviving spouse caring for the worker's child. The widow's or widower's benefit at age 60 requires the worker to have been fully insured.
Source: Texas content outline VII.C; 42 U.S.C. § 414(b) (currently insured); 42 U.S.C. § 402(d), (e) and (g) (child's, widow's and mother's/father's benefits)
A deceased worker's child generally qualifies for Social Security survivor benefits if the child is unmarried and:
1. A.Under age 25 and enrolled full time in a college or university
2. B.Under 18, or under 19 if a full-time elementary or high school student
3. C.Under age 21, whether or not the child is still in school
4. D.Of any age, as long as the child lived with the worker
Show answer
Answer: B. The Social Security Act pays child's benefits to an unmarried child under 18, or under 19 if a full-time elementary or secondary school student. An adult child can also qualify if disabled by a disability that began before age 22. College attendance alone does not extend benefits.
Source: Texas content outline VII.C; 42 U.S.C. § 402(d) (child's insurance benefits)
Social Security's one-time lump-sum death payment is:
1. A.Paid only to the worker's estate
2. B.$255, paid first to a surviving spouse who was living with the worker
3. C.Equal to the worker's annual salary
4. D.Equal to three years of the worker's monthly benefit
Show answer
Answer: B. The Social Security Act sets the lump-sum death payment at $255 (the amount has not changed in decades). It goes first to a widow or widower who was living in the same household; if there is none, it can go to a spouse or children entitled to monthly benefits on the worker's record. Because it is so small, it does little to meet final expenses, which is one reason families buy life insurance.
Source: Texas content outline VII.C; 42 U.S.C. § 402(i) (lump-sum death payments)

Where these questions come from: Texas content outline (Pearson VUE #124401, effective 1 Sep 2026), Life and Health general knowledge, section VII: Social Insurance — 6 of 100 scored questions. See how we write questions.