New Report: Medigap Remains Vital Coverage Option For Rural, Low-Income Seniors

posted by Clare Krusing

on April 23, 2015

For Immediate Release

Washington, D.C. – Medigap continues to be an important source of health coverage for low- and moderate-income beneficiaries, especially those living in rural areas, according to a new report from America’s Health Insurance Plans (AHIP).

Medicare supplement (Medigap) insurance is private health insurance designed to supplement Medicare. More than 10 million Medicare beneficiaries currently rely on Medigap coverage to help cover significant out-of-pocket costs that are not covered by Medicare, such as deductibles, coinsurance, and copayments. Medigap allows seniors to budget for medical expenses and avoid the confusion and difficulty of handling complex medical bills. As a result, Medigap beneficiaries are overwhelmingly satisfied with their coverage, and approximately 80 percent of beneficiaries say their policy provides excellent or good value for their health care dollars.

“Medigap remains an increasingly popular option for millions, particularly low-income beneficiaries, who value the peace of mind and financial protection this coverage provides,” AHIP President and CEO Karen Ignagni said.

The new report, based on the most recent data from the Medicare Current Beneficiary Survey (MCBS), builds on previous research showing the value Medigap provides to low-income and rural Medicare beneficiaries. Key findings from the new report include:

  • 21 percent of Medicare beneficiaries had a Medigap policy in 2012.
  • 58 percent of Medigap policyholders in 2012 were women, and 42 percent were men.
  • 47 percent of Medigap policyholders were age 75 years or older compared to only 38 percent for all Medicare beneficiaries.
  • 49 percent of rural Medigap policyholders and 40 percent of all Medigap enrollees had annual incomes below $30,000 in 2012.

To view the full report, click here.

AHIP continues to reach out to Medigap beneficiaries through The Partnership to Protect Medigap, a coalition of seniors and their families who support the program. For more information, visit


Providing Health Benefits for Over 200 Million Americans.

" "