As Congress returns to Washington, "Medigap" Medicare supplement plans remain at risk in order to pay for various programs such as payroll tax cuts or fixes to Medicare reimbursement rates for doctors. Proposals are under consideration to no longer allow seniors to buy a Medigap "first dollar coverage" policy that completely fills in the costs not covered by Medicare or place an excise tax on these Medigap policies. Most of the proposals would hurt seniors and require them to pay additional out-of-pocket expenses ($500 for example) before their health insurance coverage kicks in or pay an excise tax of up to 15% of their premium. We believe Congress needs to look to other areas instead of shifting the cost onto the backs of seniors.
The Coalition to Promote Choice for Seniors was formed to ensure Medicare beneficiaries continue to have access to a range of Medicare Supplement Insurance (Medigap) options. Approximately 1 in 5 Medicare beneficiaries rely on Medigap for its predictability, security and financial protection against out-of-pocket costs not covered by Medicare. In addition, beneficiaries enjoy the hassle-free, paperless delivery of benefits provided by Medigap and the ability to manage their out-of-pocket health care costs with greater predictability.
Sources: AHIP Center for Policy and Research analysis of the National Association of Insurance Commissioners' (NAIC) Medicare Supplement Insurance Experience Exhibit, For the Year Ended December 31, 2010.
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Mathematica Policy Research analysis of CMS State/County Market Penetration Files. Data are from March of the given year(s), except for 2006 which are from December 2005. 2007 data are from the July 2007 Medicare Enrollment Reports. In May 2008, CMS began releasing on a monthly basis the MA State/County Penetration Files that contain counts of Medicare eligibles by county. 2008, 2009, and 2010 data are from the July 2008, March 2009, and May 2010 MA State/County Penetration File, respectively. Starting in 2011, data are from KFF analysis of the State/County Penetration file, released in March.
Survey Says...
Seniors Love it!
A 2009 AHIP study of Medigap enrollees found overwhelming satisfaction - almost 90 percent - with their coverage.
