FYI
http://www.rwjf.org/coverage/product.jsp?id=72840&cid=xtw_rwjf
A new
policy brief from Health Affairs
and the Robert Wood Johnson Foundation (RWJF) explains how private supplemental
insurance to Medicare—commonly known as “Medigap”
plans—works, as well as the current debate in Washington for and against
changing these coverage options.
Recent
negotiations to cut the federal budget deficit have included a variety of
proposals to reduce Medicare spending. Studies have demonstrated a link between
having Medigap coverage and making greater use of health care services. The result
is higher federal Medicare spending than would be the case if Medigap did not
exist, or if it were less generous in paying for what Medicare does not. One
proposal that has been advanced to slow the rate of growth of Medicare spending
is to put limits on Medigap coverage, so that such plans would cover less than
they typically do now.
Proponents
say such a change would lead to less use of health care services and lower
overall Medicare spending, thereby helping to reduce the federal budget
deficit. Critics contend such a change would hurt Medicare beneficiaries by
making them pay more out-of-pocket. They add that this would be especially
detrimental to people in poor health who genuinely need the services, and those
with modest incomes who would have trouble absorbing the extra expense.