Will Medigap Plans Provide Less Coverage in The Coming Years?

Will Medigap Plans Provide Less Coverage in The Coming Years?

A burning issue before Congress is a budget proposal sponsored by a “super” committee of Congress. There is talk of reducing the coverage available through the Medigap plans, in an attempt to reduce the federal budget deficit by a minimum of US $1.2 trillion over the next 10 years. According to the Congressional Budget Office (CBO), this proposal arose from studies that reveal that Medigap plan holders tend to overuse the Medicare service, as opposed to the original Medicare beneficiaries. The real problem here is the term “overuse.” Individuals with a Medicare Supplement plan g are covered for more health care than people with Medicare alone. People are more inclined to use the services paid for by insurance than buying a plan for which they are responsible for paying most of the time. In this economy, many people cannot pay for health care, so of course, people who have coverage through Medigap use more health care. One way to reduce federal spending may be to reduce the study of the obvious.

How many holders of Medigap plan are affected?

Nearly 9 million beneficiaries of Medicare are supplementing Medicare with a Medigap plan to protect themselves from deductibles, copayments, and co insurance required by Medicare. However, that is where the problem emanates. According to some lawmakers in Washington, if consumers are protected from the real costs of healthcare, they are more likely to use more expensive health services. As a result, this increases the total cost of Medicare. As a result, lawmakers are considering requiring people with Medigap plans to pay more for their health services to reduce the federal budget deficit. The question arises as to which services they will reduce. It is well known that hospitals and doctors tend to err on the side of not risking legal action. Most people already have end-of-life directives to keep them from being alive in a vegetative state with no real meaning. If these are the types of health care that Congress wants to end, many people will agree to that.

On the other hand, there must be opposition if the US Congress is debating on discouraging procedures that can give people more years of useful life.

Medicare Insurance Supplement Short Opposition Face

According to Mary Beth Senkewicz, vice insurance commissioner of Florida, increasing the cost division for the holders of Medigap plans would be a violation of state and federal laws that require guaranteed renewable benefits. He added that this would lead to “serious confusion” for those who rely on Medigap insurance to protect them from unforeseen medical costs. Potentially, limiting coverage may discourage people from receiving necessary medical care. In addition, the National Association of Bipartisan Insurance Commissioners wrote a letter to oppose these changes.The super committee had until November 23, 2011 to finalize a deficit reduction plan. The congress had a month to study the plan and vote on the agreement of the super committee. Amid the change, Medigap coverage is more important? In an uncertain economy, with uncertainty about the future of Medicare, it can be worth the maximum of medical expenses with insurance.