Overwhelming Majority of Seniors Satisfied with their Medigap Coverage
Targeted News Service |
Ninety-four percent of seniors enrolled in Medigap are satisfied with their coverage, according to a new Purple Insights survey released by
Moreover, Medigap provides stability for vulnerable populations. A recent report shows that low- and moderate-income
"Millions of seniors continue to rely on the invaluable financial protection and peace of mind that Medigap coverage provides," AHIP President and CEO
Other findings from the survey include:
* More than nine out of ten (94 percent) Medigap policyholders are satisfied with their coverage.
* The vast majority of enrollees (80 percent) say their Medigap policy provides an excellent or good value for the money, consistent with similar findings in 2012 (79 percent) and 2009 (77 percent).
* More than nine out of ten (91 percent) would recommend Medigap coverage to a friend or relative when they turn 65 and enroll in
* When asked what they like most about their Medigap coverage, enrollees highlighted a variety of benefits, including limits on out-of-pocket costs, ease of dealing with medical bills and paperwork, and the ability to budget for unexpected medical costs.
* Beneficiaries also said they valued the fact that Medigap allows them to see the doctor of their choice and that it covers hospital expenses and physician costs not covered by
Out-of-pocket costs and the additional complications related to medical billing top the list of concerns Medigap enrollees would have if their coverage was no longer available to them.
To view the full report, click here. (http://www.ahipcoverage.com/wp-content/uploads/2014/03/Purple-AHIP-Medigap-Topline-March-2014.pdf)
Proposals to Change Medigap Could Threaten Affordability and Benefits Seniors Rely On
Recent proposals to alter Medigap would come at tremendous cost for beneficiaries. The President's budget proposal for 2015 includes a new tax on seniors who choose Medigap policies with low cost-sharing requirements. Adding a new tax on Medigap would increase costs for vulnerable beneficiaries who depend on the predictability and financial protection Medigap provides.
Other proposals would include a cap on first-dollar coverage. However, research has shown that limiting first-dollar coverage in Medigap policies would cause beneficiaries to avoid care that is medically necessary - resulting in higher costs for enrollees and the country. A white paper commissioned by AHIP concluded that "an across-the-board ban on first-dollar coverage Medigap plans is an overly blunt tool for lowering healthcare expenditures and invites adverse, unintended consequences."
These concerns have been echoed by other organizations:
* The Medicare Rights Center cautions policymakers against reforms that would increase costs for Medigap beneficiaries stating that, "Increasing Medigap cost sharing wrongly places the burden on beneficiaries to self-ration health care services." The report adds that, "...increased cost sharing is shown to limit care indiscriminately, forcing patients to forgo both needed and unneeded care. Prohibiting or discouraging Medigap first dollar coverage would cause the most harm to those beneficiaries who have the greatest need for coverage, the sickest individuals and people with low and modest incomes."
* In a letter to HHS, the
*
* A joint letter to the NAIC from a variety of consumer groups said that these proposals "are based on the false assumptions that beneficiaries with supplemental coverage use more
Importantly, the cost savings often cited by proponents of restricting first-dollar coverage in Medigap are based on proposals that would apply this change to current
AHIP continues to reach out to Medigap beneficiaries through The Partnership to Protect Medigap, a coalition of seniors and their families who support the program. For more information, visit www.protectmedigap.org.
[Category: Insurance]
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