Monthly Archives: July 2011

Medigap Plans Under Siege!

People on Medicare with supplementary insurance, known as Medigap, need to know that many in Congress are proposing that changes be made to their plans as part of a deficit reduction package.

The premise of the proposed changes is that those with Medigap coverage are more likely to use their Medicare benefits. Therefore, higher deductibles and co-pays will discourage unnecessary medical care.

This is an argument that is also sometimes made regarding standard health insurance. “If more people had high deductible health plans they would use less coverage”. This is true. However, it does absolutely nothing to address the underlying problem in Medicare, which is the high cost of health care. Putting seniors into situations where they will be less vigilant in pursuing care will only lead to more severe issues that cost more money. “A stitch in time saves nine.”

People have purchased Medigap coverage to be responsible – they wanted to have predictable health care costs at an age when incomes are largely fixed. In my opinion, that sort of prudence should be celebrated in America – not punished.

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Jason Hillner