American Society on Aging
833 Market St., Suite 511
San Francisco, CA 94103
www.asaging.org
info@asa.asaging.org
Medigap Coverage Drops for Elders
The number of Medicare beneficiaries ages 65 and older who have no supplemental Medigap coverage jumped by 33%--to a total of 9.2 million people--from 1994 to 1998, according to a new report by the Employee Benefit Research Institute (EBRI), Washington, D.C.
Medigap policies cover costs like prescription drugs that are not reimbursed under Medicare, and the study found evidence that many older adults without such coverage had joined Medicare managed care plans. Medicare HMO enrollment in the same period grew from 3.1 million to 6.6 million. "However, the 3.5 million additional beneficiaries in these plans do not necessarily include all of the 2.3 million additional elderly Medicare beneficiaries without an additional source of coverage," the report says. The analysis stresses that "those most likely to be without an additional source of coverage were older beneficiaries, minorities, the 'near-poor' and women."
The report found that in 1998, 27.1% of white Medicare beneficiaries did not have supplemental coverage, compared with 44.7% of African Americans, 44.6% of Hispanics and 34.3% of beneficiaries of other races. Forty-four percent of elders with Medicare who had incomes slightly above federal poverty levels were without an additional source of coverage, compared with only 21.8% of those with incomes of at least 400% of the poverty-line amount. Among male beneficiaries, 27.9% were without a Medigap policy, compared with 30.9% of female beneficiaries. Furthermore, nearly 40% of Medicare beneficiaries ages 85 and older did not have supplemental coverage in 1998, compared to slightly 20.7% of those ages 6569.
The analysis, based on the U.S. Census Bureau's "March Current Population Survey" for the years 19951999, is titled "Medicare Beneficiaries With Dual Sources of Coverage." It appeared in the February 2000 issue of EBRI Notes (no. 2), available for $25 prepaid by calling (202) 775-9132.
American Society on Aging
833 Market St., Suite 511
San Francisco, CA 94103
www.asaging.org
info@asa.asaging.org