Nine out of Ten Seniors Satisfied with their Medigap Coverage
For Immediate Release
June 15, 2012
Nine out of Ten Seniors Satisfied with
their Medigap Coverage
Medigap Enrollment Continues to Increase
Washington, DC – Nine out of ten seniors
enrolled in Medigap are satisfied with their coverage, according to a new
American Viewpoint survey released by America’s Health Insurance Plans
(AHIP). According to the survey,
seventy-nine percent of beneficiaries say their policy provides excellent or
good value for the money, and the vast majority (91 percent) would recommend
Medigap to a friend or relative.
AHIP also released a report showing that the number of
seniors choosing Medigap coverage continues to increase, reaching 9.8 million
enrollees in 2011.
Medicare supplement (Medigap) insurance is private health
insurance designed to supplement Medicare. It offers coverage, at varying
levels, for the significant out-of-pocket costs that are not covered by
Medicare, such as deductibles, coinsurance, and copayments. Medigap
coverage allows seniors and younger Medicare enrollees with disabilities – many
of whom are on fixed incomes – to budget for medical costs and avoid the
confusion and inconvenience of handling complex medical bills.
“Medigap coverage provides seniors with financial security
and peace of mind about their health care coverage,” said Karen Ignagni,
President and CEO of AHIP.
Key findings from the American Viewpoint survey include:
- Nine out of ten Medigap
policyholders are satisfied with their coverage. Overall satisfaction with
Medigap coverage is also comparable to levels found in 2009 (88 percent)
and 2005 (90 percent).
- The vast majority of
enrollees (79 percent) say their Medigap policy provides an excellent or
good value for the money, consistent with similar findings in 2009 (77
percent) and 2005 (80 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 Medicare. This is higher than scores reported
in either 2009 (87 percent) or 2005 (84 percent).
- 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
- 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 Medicare.
Out-of-pocket costs and the loss of financial
security and peace-of-mind top the list of concerns Medigap enrollees would
have if Medigap insurance was no longer available to them.
For more information about this survey, view the following:
Summary of American
Medigap Continues to be a Popular Coverage Option for
AHIP also released a report, Trends in Medigap Coverage and
Enrollment, 2011, which found that enrollment in Medigap coverage increased
by 100,000 individuals, from 9.7 million in December 2010 to 9.8 million in
December 2011. The report also highlights which Medigap options are most
Key findings from the report include:
- Most Medicare beneficiaries obtain coverage that
provides benefits beyond traditional Medicare (Part A or B), whether through
Medigap, Medicaid, employer-based retiree plans, or comprehensive coverage
through Medicare Advantage.
- In 2011, most Medicare beneficiaries with
Medigap coverage were enrolled in Plan F (51 percent) and fourteen percent were
enrolled in Plan C. Both of these plans cover 100 percent of the
deductibles and coinsurance not covered by Medicare.
- Many Medicare beneficiaries are choosing to
enroll in plans that contain at least some cost-sharing. High-deductible
Plan F, and newer standardized Medigap plans K, L, M, and N—which have
copayments, coinsurance or deductibles—made up 23 percent of new Medigap
purchases in 2011. Plan N, which includes cost sharing of up to $20 for
physician office visits and up to $50 for certain emergency room visits,
represented 18 percent of newly purchased Medigap policies in 2011 and was the
most popular of the newer plans.
The study examined data from the National Association of
Insurance Commissioners (NAIC) and from an AHIP survey of newly purchased
cost-sharing policies issued by Medigap carriers through 2011.
full report is available here: Trends
in Medigap Coverage and Enrollment, 2011.
Providing Health Benefits for Over 200 Million Americans.