Paul, age 66, works for American Accounting, Inc., a firm with 500 employees. He is covered by its health insurance plan. He is also covered by Medicare. Which of the following statements is CORRECT?

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Paul, age 66, works for American Accounting, Inc., a firm with 500 employees. He is covered by its health insurance plan. He is also covered by Medicare. Which of the following statements is CORRECT?

A) Medicare is the primary payor, and American Accounting’s plan is the secondary payor.

B) American Accounting’s plan is the primary payor, and Medicare is the secondary payor.

C) Medicare is not required to provide coverage for Paul.

D) Medicare will pay only the deductibles that are not covered by American Accounting’s plan.

Answer: American Accounting’s plan is the primary payor, and Medicare is the secondary payor.

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