There are many discussions on reducing government spending by targeting Medicare and Medigap. Often these plans revolve around ways in making seniors pay more for their medical care so they will be less inclined to use the health benefits they have. Several plans have been proposed to force seniors to pay less for their Medicare supplement insurance (a.k.a. “Medigap”). Paying less may sound like a great idea but when you pay less you get less. Meaning less coverage! Less coverage translates into paying more co-pays and deductibles when you do use medicare. Of course then people will be less likely to use their Medicare benefits which intern save the Government money.
Medicare supplement policies fill the gaps in Medicare and pay some or all of the co-insurance and deductibles that are built into Medicare. The most popular Medigap plans are plan F which fills all the gaps, and Plan G which covers everything plan F covers except the yearly part B deductible ($140 2012). So seniors with these plans pay their monthly Medicare premium, their Medigap premium, and don’t have to worry about medical bills when they get sick. The new rules being proposed for Medicare supplement plans would not allow this kind of “first dollar coverage”. It has been estimated recently that about half of Americans who are over 65 have less than $50,000 in savings. So whatever they decide in Congress they should slowly fade in any changes. This will limit the hurt to current seniors and give those next in line a chance to plan.