Perspective               

Few People Have Medigap Plans with Prescription Benefits

The General Accounting Office (GAO) reports that more than one-fourth of all people with Medicare, that's over 10 million people, used Medicare supplemental insurance policies often called Medigap policies in 1999 to fill the gaps in their Medicare coverage. However, only 8 percent of those people bought any of the three standardized Medigap policies that include prescription drug coverage.

The report says that low enrollment in the Medigap plans that include prescription drug coverage may result from high premiums and the fact that because the prescription benefit is limited under these plans they can still leave people with large out-of-pocket costs for health care services. In 1999 standardized Medigap plans with prescription drug coverage had an average premium of $1,600, compared with about $1,150 for standardized plans without prescription drug coverage.

Limited access to Medigap policies that offer prescription drug coverage may also contribute to low enrollment. Some people with Medicare live in areas where no Medigap policy with prescription coverage is available and other people have health conditions that make them ineligible to buy a Medigap policy with prescription coverage. In short, the GAO found that people who want to buy a Medigap policy after the initial six-month open enrollment period may find coverage limited or expensive, depending on their state of health.

If you are having trouble paying for your prescriptions, call your Senators and Representatives in Congress and let them know. Find out if you are eligible for prescription drug assistance from your state. If not, ask them how they plan to help you.

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