Paying for Choice: The Cost Implications of Health Plan Options For People on Medicare

Publication Date: January 2003

Publisher: Henry J. Kaiser Family Foundation

Author(s):

Research Area: Health

Type: Report

Coverage: United States

Abstract:

This report illustrates the financial stakes for Medicare beneficiaries when making choices about supplemental insurance coverage, by examining how much people on Medicare could spend out-of-pocket including premiums and other cost-sharing requirements under different supplemental insurance options. To assess the cost implications of choosing between different Medigap and Medicare+Choice insurance options, the research team estimated the range in health care expenditures associated with three prototypical beneficiaries (a 50 year-old man with disabilities, a relatively healthy 65 year-old woman, and a frail 80 year-old woman) within and across eight distinct geographic areas. Cost comparison included four standardized Medigap plans (A, F, H, and J) and any of up to five Medicare+Choice HMO options available in each geographic area all in comparison with choosing no supplemental coverage at all.