State RegulationsVA specificDifficulty 1/5
Under Virginia's Medicare supplement standardization rules, why are the benefit designs of Medicare supplement policies standardized?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The standardization requirements administered through Virginia's Medicare supplement regulations — 14 VAC 5-170-75 and related provisions enforced by the Virginia Bureau of Insurance — require that policies carrying the same standardized designation deliver the same core benefits. The consumer-protection logic is comparability: once benefits are fixed by the designation, shoppers can shop insurers on premium and service rather than untangling benefit differences. The Bureau's oversight of filings supports that comparison shopping.
Why the other options are wrong
- B) Standardization fixes benefits, not prices; insurers compete on premium within the standardized design.
- C) Standardization is about uniform benefit design, not limiting market participation by insurers.
- D) There is no rule confining sales to the first year of Medicare enrollment; open enrollment and other windows govern access instead.
Memory hook
Same letter, same benefits: standardization makes price the only difference to shop.