Medigap gets high remarks

By BenefitsPro


By Kathryn Mayer

Nine in ten seniors enrolled in Medigap say they are satisfied with their coverage and the vast majority (91 percent) say they’d recommend the coverage to a friend or relative when they turn 65, a survey from America’s Health Insurance Plans finds.

The numbers of satisfaction are up from previous years.

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).

Medigap enrollees say out-of-pocket costs and the loss of financial security and peace-of-mind top the list of concerns they would have if Medigap insurance was no longer available to them.

The number of seniors choosing Medigap coverage continues to increase, reaching 9.8 million enrollees in 2011, AHIP reports.

Medicare supplement insurance—Medigap— 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.

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 Medicare.

“Medigap coverage provides seniors with financial security and peace of mind about their health care coverage,” says Karen Ignagni, AHIP president and CEO.

Originally published on BenefitsPro.com