Someone has convinced members of Congress negotiating the budget deal that seniors spend more on health care because they can and they can because of the existence of Medigap policies. Studies in 2009 seem to support this idea. The idea being floated is to limit Medigap policies so that all would have a deductible. If not, the senior would have to pay Medicare a supplemental premium on the theory they will be greater users of health care.
While there may be some validity to all this, the idea also fails to consider all the initiatives underway currently that are supposed to manage the care seniors receive. So which is it, shift costs to seniors or manage their health care via such efforts as Accountable Care Organizations?
The other side of this story is that seniors pay for the Medigap coverage, often $500 or more a month for a couple. Deductibles in a Medigap policy will mean lower premiums and the savings can be used to cover the deductible.
Still to be addressed, what happens to seniors who enjoy near complete coverage through Medicare Advantage Plans or employer-provided supplemental coverage.
Kaiser Health News contains an excellent summary of the situation which you can read hear.
Related articles
- Medigap coverage – balancing premiums and your out-of-pocket risk (quinnscommentary.com)
- Washington Post on What Debt Ceiling Talks Could Mean to Medicare, Social Security and Medicaid (ritterim.com)
- Agreement on Debt Talks: Health Groups Dislike Proposals (nytimes.com)
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