More Seniors Opting For Medigap Plans, With An Increase In Year-Over-Year Enrollment

by Cathryn Donaldson

May 5, 2017

WASHINGTON, D.C. –  More seniors are choosing to enroll in Medicare Supplement Insurance plans (also known as Medigap), increasing enrollment from approximately 11 million beneficiaries to around 12 million between December 2014 and December 2015, according to a recent report from America’s Health Insurance Plans (AHIP). Medigap offers low-income seniors a vital sense of financial security, health coverage reliability, choice, and protection from unforeseen medical expenses.

Medigap is private health insurance designed to supplement Medicare, offering coverage for out-of-pocket costs that are not covered by Medicare, such as deductibles, coinsurance, and copayments. Medigap coverage allows seniors – many of whom are on fixed incomes – to budget for medical costs and avoid the confusion of complex medical bills.

“What we’re seeing in this report underscores the critical importance of Medigap plans to millions of seniors. These policies help promote access, fill gaps in coverage, and provide overall peace of mind to beneficiaries,” said Marilyn Tavenner, AHIP President and CEO.

Using data from the National Association of Insurance Commissioners, this report indicates that Medigap policies are continuing to help establish more stable, predictable health care costs for this population. Some key findings include:

  • Enrollment in Plan F, offering coverage for Medicare deductibles and coinsurance amounts, grew significantly by around 500,000 enrollees (an eight percent increase).
  • Enrollment in Plan G, which covers all Medicare deductibles and coinsurance amounts except the Part B deductible, increased by 28 percent from 2014-2015 – or by 198,000.
  • Enrollment in Plan K, which provides partial coverage for coinsurance and copayments, also increased by 28 percent from 2014 to 2015.
  • The percent of fee-for-service Medicare beneficiaries with Medigap increased from 30 percent in 2014 to 32 percent in 2015.

The full report can be found here.