posted by Center for Policy and Research
on November 13, 2014
This report presents trends in enrollment and coverage options in Medicare Supplement (Medigap) insurance using data on enrollment as of December 2013 from the National Association of Insurance Commissioners (NAIC). The NAIC dataset contains information on most Medigap policies in force in the U.S. and its territories, representing approximately 10.6 million enrollees, with policies from 298 companies.
Medigap is a key source of supplemental coverage for Medicare beneficiaries. Seniors purchase Medigap coverage to protect themselves from high out-of-pocket costs not covered by Medicare, to budget for medical expenses, and to avoid the confusion and inconvenience of handling complex bills from health care providers.
In 2013, the Medicare program had a $1,184 deductible per benefit period for inpatient hospital care (Part A) and a coinsurance beginning with day 61 of hospitalization. Part B required a 20 percent coinsurance for outpatient and physician care after an annual deductible of $147.3 In addition, the Medicare program does not have a limit on beneficiaries’ potential out-of-pocket costs.