NAIFA and 17 other members of the Coalition to Promote Choice for Seniors have sent a letter to influential members of Congress urging them to reject any proposal that “shifts [health care] costs to seniors with Medigap coverage” and offering data and expertise to educate Congress on Medigap-related issues.
The letter comes as budget woes on Capitol Hill have once again prompted some members of Congress to eye laws restricting Medigap insurance.
The theory is that Medigap coverage encourages seniors to get expensive medical tests and services they would reject if they had to pay part or all of the cost. However the coalition notes in its letter that Medigap carriers do not determine what medical tests and procedures are necessary, but the coverage simply pays expenses for tests and procedures Medicare has approved but does not cover completely. The letter also cites studies showing that the advice of physicians, not cost-sharing considerations, primarily determine courses of treatment once patients enter the health care system.
Approximately 20 percent of Medicare recipients use Medigap plans to budget for out-of-pocket health care costs due to Medicare's limitations and cost-sharing obligations. Senior citizens already spend 15 percent of their income of health care, and eliminating or scaling back Medigap coverage would result in financial hardship for millions of people.