New Jersey Health Insurance Practice Exam Free 2026

• A. Long-term care
• B. Hospital stays
• C. Prescription drugs
• D. Medical insurance including doctor services and outpatient care

Correct answer: D. Medical insurance including doctor services and outpatient care

Explanation: Medicare Part B is medical insurance that covers physician services, outpatient care, preventive services, durable medical equipment, and some home health care.

• A. Cancer treatment coverage
• B. Private health plans that provide all Part A and B coverage, often with additional benefits
• C. Prescription drug coverage
• D. Supplemental coverage only

Correct answer: B. Private health plans that provide all Part A and B coverage, often with additional benefits

Explanation: Medicare Part C (Medicare Advantage) plans are offered by private insurers approved by Medicare. They must cover everything Original Medicare covers and often include additional benefits like vision, dental, and prescription drugs.

• A. Dental services
• B. Prescription drug coverage
• C. Disability benefits
• D. Hospital stays

Correct answer: B. Prescription drug coverage

Explanation: Medicare Part D provides prescription drug coverage. It's offered through private plans approved by Medicare, either as stand-alone prescription drug plans or as part of Medicare Advantage plans.

• A. A Medicare Advantage plan
• B. A replacement for Medicare
• C. Private insurance that helps pay Medicare's gaps like deductibles and coinsurance
• D. Medicare for low-income individuals

Correct answer: C. Private insurance that helps pay Medicare's gaps like deductibles and coinsurance

Explanation: Medicare Supplement (Medigap) policies are sold by private insurers to help pay for out-of-pocket costs not covered by Original Medicare, such as deductibles, copays, and coinsurance.

• A. A private insurance option
• B. A prescription drug program
• C. A joint federal-state program providing health coverage to low-income individuals
• D. A federal program for seniors

Correct answer: C. A joint federal-state program providing health coverage to low-income individuals

Explanation: Medicaid is a joint federal and state program that provides health coverage to eligible low-income individuals, families, children, pregnant women, elderly, and people with disabilities.

• A. Only in certain states
• B. Yes, these individuals are called 'dual eligibles'
• C. Only for prescription drugs
• D. No, you must choose one

Correct answer: B. Yes, these individuals are called 'dual eligibles'

Explanation: Yes, some individuals qualify for both Medicare and Medicaid. These 'dual eligible' beneficiaries get Medicare coverage plus Medicaid may pay their Medicare premiums and cover additional services.

• A. Insurance sold to groups of friends
• B. Health coverage provided to a group, typically by an employer
• C. A group of policies combined
• D. Coverage for group activities

Correct answer: B. Health coverage provided to a group, typically by an employer

Explanation: Group health insurance is health coverage provided to a defined group of people, most commonly employees of a company, under a single master policy. Risk is spread across the group.

• A. A law allowing continued group health coverage after qualifying events like job loss
• B. A type of snake bite coverage
• C. A government health program
• D. A type of HMO plan

Correct answer: A. A law allowing continued group health coverage after qualifying events like job loss

Explanation: COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows employees and their families to continue group health coverage for a limited time after qualifying events like job loss, reduced hours, or divorce.

• A. Indefinitely
• B. 18 months for most qualifying events
• C. 6 months
• D. 12 months

Correct answer: B. 18 months for most qualifying events

Explanation: COBRA coverage typically lasts 18 months for most qualifying events (job loss, reduced hours). It can extend to 36 months for certain events like divorce or a child losing dependent status.

• A. It's always free
• B. The employee pays the full premium plus up to 2% administrative fee
• C. The former employer pays 100%
• D. The government subsidizes it

Correct answer: B. The employee pays the full premium plus up to 2% administrative fee

Explanation: Under COBRA, the former employee pays the full premium cost (including the portion the employer previously paid) plus up to a 2% administrative fee. This is often significantly more expensive than when employed.

• A. Employers with 20 or more employees
• B. Only Fortune 500 companies
• C. All companies regardless of size
• D. Only government employers

Correct answer: A. Employers with 20 or more employees

Explanation: COBRA applies to employers with 20 or more employees who offer group health plans. Smaller employers may be subject to state continuation laws (often called 'mini-COBRA').

• A. A Medicare supplement plan
• B. A state health insurance program
• C. Federal law that reformed health insurance and expanded coverage access
• D. An employer mandate only

Correct answer: C. Federal law that reformed health insurance and expanded coverage access

Explanation: The Affordable Care Act (also known as 'Obamacare') is a comprehensive federal law enacted in 2010 that reformed health insurance markets, expanded Medicaid, created health insurance marketplaces, and established consumer protections.

No. This is an independent study resource. Use New Jersey Department of Banking and Insurance and PSI resources for official licensing, scheduling, fee, and exam-rule details.

Review health policy provisions, disability income, group health, Medicare and Medicaid basics, Affordable Care Act concepts, ethics, and New Jersey-specific insurance law.

Verify current scheduling and candidate-handbook details through the official regulator and exam-source links listed on this page.

No. Practice results can help you identify weak topics, but they do not guarantee a passing score, licensing eligibility, or regulator approval.

Take a practice set first, review missed explanations, compare weak topics with the official content outline, and then retake targeted practice questions.