Medigap Policyholders Survey

1
Medigap Policyholders Survey Executive
Summary Prepared for AHIP/Blue Cross Blue
Shield Prepared by Gary A. Ferguson, Senior Vice
President May 2009
2
Introduction and Methodology
AHIP and the Blue Cross and Blue Shield
Association commissioned American Viewpoint,
Inc., to conduct a national survey of Medigap
policyholders. In all, 500 telephone interviews
with Medicare enrollees who have self-purchased
Medigap plans were conducted between March 16 and
22, 2009. The sample was drawn from a targeted
Survey Sampling database of those age 65 and
older and respondents were randomly selected.
All surveys are subject to errors caused by
interviewing a sample of persons rather than the
entire population. The margin of error for N500
is 4.5 at a 95 confidence level.
3
Key Findings

• Medigap policyholders are extremely
  satisfied with their Medigap coverage (88
  satisfied,
• 62 highly satisfied).
• They believe their Medigap policy provides
  good value for the money (77 good value, 34
• excellent value).
• Respondents report that the feature they
  like most is that their Medigap coverage
• allows them to see the doctor of their
  choice (28)
• provides financial security and peace of
  mind (27)
• makes it easier to deal with medical bills
  and paperwork (13)
• limits out-of-pocket costs for health care
  (10).
• Nearly nine out of ten would recommend
  Medigap coverage to a friend or relative when
  they
• turn 65 and enroll in Medicare (87).
• Medigap policyholders are unwilling to pay
  higher deductibles or out-of-pocket expenses in
• order to reduce their premiums (69
  unwilling, 13 dont know).
• There is strong opposition to congressional
  action that would require policyholders to pay an

4
Policyholders are highly satisfied with their
Medigap coverage.
How satisfied are you with your Medigap coverage?
88
7
4
Numbers may not appear to add up due to rounding
5
Satisfaction with Medigap Detail

• Satisfaction with Medigap is registered
  across all major subgroups although there are
  certain
• differences by subgroup.  For example,
  Westerners are more intensely satisfied than
  those
• in the South, Midwest or East.  However,
  overall satisfaction is high across all regions.
•  
• Men and women have similar overall
  satisfaction levels, but men are somewhat more
  likely
• to say they are very satisfied. 
  Likewise, the various age groups have high
  overall
• satisfaction rates. 
•  
• Not surprisingly, those who say Medigap is
  an excellent or good value are highly
• satisfied.  However, satisfaction is also
  extremely high (73) among those who consider it
  a
• fair or poor value.
•  
• Satisfaction scores are high regardless of
  health status.

6
The vast majority say that their Medigap policy
is a good value for the money.
Thinking about the monthly premiums you pay just
for your Medigap supplemental policy and the
services that are covered, how good a value is
your Medigap policy?
Numbers may not appear to add up due to rounding
7
Policyholders report liking many aspects of their
Medigap coverage.
What do you like most about your Medigap
supplemental insurance?
Numbers may not appear to add up due to rounding
8
The vast majority would recommend Medigap
coverage to others.
Would you recommend Medigap coverage to a friend
or relative when they turn 65 and enroll in
Medicare?
9
A majority of policyholders strongly opposes a
proposal that would require Medigap policyholders
to pay an annual deductible.
Some people in Congress have suggested that
Medigap causes seniors to use more health care
services because it provides coverage for almost
all out-of-pocket expenses. Would you favor or
oppose a proposal that would require everyone
with Medigap insurance to pay an annual
deductible, such as the first 500 of their
expenses, and some part of the cost for most
doctor visits and hospital stays?
19
68
13
10
Few would be willing to pay higher deductibles or
out-of-pocket expenses in order to reduce their
monthly Medigap premiums.
Would you be willing to pay higher deductibles or
other out-of-pocket expenses in order to reduce
the monthly premiums you pay for your Medigap
policy?
Numbers may not appear to add up due to rounding
11
Policyholders have many concerns if they could no
longer afford to purchase Medigap insurance.
If you could no longer afford to purchase Medigap
insurance, what would be your biggest concern?
COMBINED FIRST AND SECOND RESPONSE
Numbers may not appear to add up due to rounding