Holly just turned 65 and purchased a Medicare Select policy. Which statement correctly describes the features of her policy?

A Medicare Select policy is a type of Medicare supplement insurance that offers coverage with specific network restrictions. This means that, in exchange for lower premiums, beneficiaries like Holly must seek care from certain providers or hospitals that are part of the plan's network. These network provisions are designed to provide cost savings for both the insurer and the insured by encouraging the use of a preferred group of healthcare providers.

When comparing this to other options, it becomes evident that the other statements do not accurately represent how Medicare Select policies function. For instance, stating that a policy offers nationwide provider access without restrictions is misleading, as Medicare Select policies require members to use a specific network of providers. Likewise, guaranteeing payment for all services provided is not accurate since coverage is contingent upon utilizing network providers, and out-of-network services may have different terms or not be covered. Additionally, while some policies may allow for out-of-network coverage, Medicare Select policies typically do not include such options without higher cost-sharing, which distinguishes them from standard Medicare plans that offer broader provider access.

Thus, the correct identification of restricted network provisions aligns with the structure and rules governing Medicare Select policies, reinforcing the importance of understanding how these restrictions can affect the choice of healthcare providers and overall coverage.