Do You Have a MediGap Policy? Read this

FAQ: Seniors May See Changes in Medigap Policies

By Julie Appleby

KHN Staff Writer

JUL 15, 2011

As debt limit talks drag on, lawmakers are eying possible changes in Medicare supplemental plans - moves that could increase seniors’ out-of-pocket costs.

Photo by toastbrot81 via Flickr

Traditional Medicare, the federal health program for the elderly and disabled, requires beneficiaries to pay hospital deductibles and a portion of the cost of tests and doctor visits.  To protect themselves from those out-of-pocket costs, about 17 percent of beneficiaries buy Medigap plans.   Another 34 percent get such coverage through a former employer.

But some health policy experts say such “first-dollar protection” drives up demand for Medicare services, costing the government money for what may be unnecessary care. One proposal would bar supplemental insurance from completely eliminating out-of-pocket costs – or charge enrollees a $530 a year extra if they want to keep such protection. That change could save up to $53 billion over 10 years, according to a chart used during the bipartisan talks led by Vice President Joe Biden.

To read more: http://www.kaiserhealthnews.org/Stories/2011/July/15/medigap-medicare-supplemental-faq.aspx