Navigation Links
New AHIP Study in Health Affairs Challenges Previous Assumptions About Medigap's Impact on Medicare Costs

AHIP releases new study of Medigap market

WASHINGTON, March 12 /PRNewswire-USNewswire/ -- Groundbreaking research on Medicare supplemental insurance (Medigap) challenges previous assumptions about Medigap's impact on Medicare costs. The new study by America's Health Insurance Plans (AHIP) was published this week in the journal Health Affairs. AHIP also released a new analysis of the Medigap market which found that Medigap enrollment has remained constant in recent years, showing the value this option provides for Medicare beneficiaries.

(Logo: )

"The new data provide a fresh perspective on Medigap coverage and its effect on health care costs in Medicare," said Karen Ignagni, President and CEO of AHIP.

Previous studies have asserted that Medigap policyholders incur as much as 25 percent more Medicare expenditures than beneficiaries with fee-for-service (FFS) Medicare only because Medigap generally provides coverage on a first-dollar basis, meaning it does not require any cost-sharing for beneficiaries.

The AHIP study shows that nearly half of this apparent increase in Medicare expenditures can be explained by controlling for the use of services received through the Veterans Administration (VA) or at military facilities. Thirteen percent of FFS-only beneficiaries relied on the VA or military facilities as their primary source of care, compared to just one percent of Medigap purchasers. These services are not billed to Medicare, causing Medicare costs for FFS-only beneficiaries to appear artificially low compared to beneficiaries with Medigap coverage.

Further, beneficiaries' health status may explain much of the remaining difference in health costs between these two groups. Previous studies argued that Medigap policyholders were healthier than FFS-only beneficiaries. These studies, however, relied on beneficiaries' self-reported health status rather than looking at more detailed claims-based health status information.

AHIP conducted a detailed analysis of Medicare beneficiaries' expenditures for the most costly health conditions and found that, for each condition and across age groups, the incidence of illness was actually higher among Medigap policyholders than among all Medicare beneficiaries.

"AHIP's study goes further than our original research to help explain the apparent difference in Medicare costs between these two groups," said Judith Shinogle, Assistant Professor of Health Economics at the University of Maryland and a co-author of the original study that analyzed the impact of Medigap on Medicare costs.

AHIP also released a new study of the Medigap market, which found that enrollment in Medigap has remained constant in recent years. The overall number of Medigap policyholders has remained steady and the number of standard Medigap policies in force has increased by three percent between 2004 and 2006, demonstrating the importance of this product for Medicare beneficiaries to protect themselves from high out-of-pocket costs.

Most Medicare beneficiaries with standard Medigap plans purchased Plan F (40 percent), followed by Plan C with 19 percent enrollment. Both of these policies cover 100 percent of the deductibles and coinsurance charged by Medicare.

"Medigap provides beneficiaries with additional benefits not available through Medicare and allows seniors to more accurately budget for medical expenses," said Ignagni, who also noted that more than 90% of Medigap policyholders say they are satisfied with their coverage.

In 2008, the Medicare program has a $1,024 deductible for inpatient hospital care and 20 percent coinsurance for outpatient care after an annual deductible of $135. These are adjusted upward each year and Medicare does not have a limit on beneficiaries' potential out-of-pocket costs. Medigap policies generally cover Medicare deductibles and coinsurance, as well as certain benefits not covered by Medicare. Two of the standard Medigap plans provide a limit on beneficiaries' out-of-pocket costs.

For more information about the new Medigap study in Health Affairs or the Medigap analysis, please visit AHIP's Center for Policy and Research at

America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans

SOURCE America's Health Insurance Plans
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. MHA to Release Findings of Independent Long Term Care Member Study
2. Henry Ford Hospital to study effectiveness of a new procedure that may help emphysema suffers
3. Radiologist Leora Lanzkowsky Study Suggests ...
4. Cepheid Comments on Study Regarding MRSA Surveillance Reported in the Journal of the American Medical Association
5. Life Recovery Systems Study of Heart Attack With ThermoSuit(R) System
6. Gender bias may affect care of people with osteoarthritis, study finds
7. Lung damage in babies with congenital heart disease under study
8. The hand cant be fooled, study shows
9. Oregon study raises questions on synthetic progestins
10. PSA Test Losing Diagnostic Value, Study Says
11. Cerimon to Conduct a Proof of Concept Study for Basiliximab for Noninfectious Uveitis, a Potentially Sight-Threatening Inflammation of the Eye
Post Your Comments:
(Date:12/1/2015)... , ... December 01, 2015 , ... ... of Excellence (BHCOE) today announced that the organization has awarded Education and Developmental ... with a Distinguished Award. The award celebrates exceptional special needs providers that excel ...
(Date:12/1/2015)... MA (PRWEB) , ... December 01, 2015 , ... Lutronic, ... release of Clarity, the latest addition to the devices for sale in the United ... 755 nm Alexandrite and long-pulsed 1064 nm Nd:YAG lasers, into a single platform that ...
(Date:12/1/2015)... (PRWEB) , ... December 01, 2015 , ... XTC ... selected 10 semi-finalists to head to Las Vegas for CES 2016, the world’s largest ... CEO of Consumer Technology Association Gary Shapiro, Founding Partner of Pacific Investments Veronica Serra, ...
(Date:12/1/2015)... ... , ... Nurotron Biotechnology Co., Ltd., maker of cochlear implant systems, has won ... order will be from the China Disabled Persons’ Federation, a central government association, for ... for children and adults suffering from severe and profound hearing loss . The ...
(Date:12/1/2015)... IL (PRWEB) , ... December 01, 2015 , ... ... Unified Contact Center Enterprise Authorized Technology Provider (ATP) status from Cisco. This designation ... deploy and support Cisco Unified Contact Center solutions targeted to the high-end enterprise ...
Breaking Medicine News(10 mins):
(Date:12/1/2015)... December 1, 2015 --> ... research report "Nucleic Acid Labeling Market by Product (Reagents ... Random Primer, In Vitro Transcription, Reverse Transcription, End Labeling), ... MarketsandMarkets, The global market is expected to reach USD ... 2015, growing at a CAGR of 8.65%. ...
(Date:12/1/2015)... , Dec. 01, 2015 ... announced the addition of the ... Campylobacter, Cryptosporidium, E. Coli, Enterovirus, Rhinovirus, ... report to their offering. --> ... addition of the "2016 Europe ...
(Date:12/1/2015)... ANGELES , Dec. 1, 2015 CytRx ... development company specializing in oncology, today announced that it ... the company,s pivotal global Phase 3 clinical trial of ... (STS). Enrollment was originally estimated to be completed in Q1 ... being conducted under a Special Protocol Assessment from the ...
Breaking Medicine Technology: