Medigap Is a Vital Source of Coverage for Low-Income and Rural Beneficiaries

Medigap Is a Vital Source of Coverage for Low-Income and Rural Beneficiaries

Medicare supplement (Medigap) insurance is private health insurance designed to supplement Medicare.  It offers coverage, at varying levels, for the significant out-of-pocket costs that are not covered by Medicare, such as deductibles, coinsurance, and copayments.  Medigap plans are used by nearly 10 million seniors and other Medicare beneficiaries, offering them a sense of security about both the predictable and unexpected costs associated with medical care.

New data from the Medicare Current Beneficiary Survey (MCBS) show that Medigap is particularly important to low- and moderate-income beneficiaries, especially those living in rural areas.  Here are some key findings:

  • Thirty-two (32) percent of Medigap policyholders resided in rural areas in 2010; by comparison, 23 percent of all Medicare beneficiaries resided in rural areas.
  • More than half of all Medigap policyholders (51 percent) and nearly two-thirds (60 percent) of rural Medigap policyholders had incomes below $30,000.
  • Overall, 45 percent of Medigap policyholders had incomes ranging from $10,001 to $30,000 in 2010.  This income bracket accounted for the highest proportion of Medigap purchasers.  In rural areas, 53 percent of Medigap policyholders had incomes in the $10,001 to $30,000 range.

Access the full report: Low-Income & Rural Beneficiaries with Medigap Coverage, 2010.  For more information on Medigap, visit AHIP’s Coverage Blog here: http://www.ahipcoverage.com/tag/medigap/.

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