Which statement about the regulation of long-term care and Medicare supplement products is true?

• A. They are regulated by the federal government
• B. They are not regulated at all
• C. They are regulated primarily at the state level
• D. They are regulated by the international insurance group

Answer: (C)

Regulation of long-term care and Medicare supplement policies is primarily handled by state insurance departments under each state's laws. This fits the usual pattern in the U.S. where states oversee insurance products, including approval of policy forms, required provisions, and consumer protections, with the McCarran-Ferguson Act reinforcing that state authority. Federal involvement exists for Medicare itself and its program rules, but private LTC and Medigap policies follow state regulatory frameworks. So, the statement that these products are regulated primarily at the state level is the true one.