Policymakers may force Medigap enrollees to pay more out of pocket

Full analysis

Policy discussions are underway that could require Medigap supplemental insurance policies — which now cover most or all of Medicare's cost-sharing — to leave beneficiaries responsible for a minimum amount of their own medical costs. The argument behind the proposal is that first-dollar coverage (paying virtually everything) encourages unnecessary healthcare use; if adopted, it would shift some spending back to retirees, though Medigap premiums would likely fall as a result. The article notes that "minimum" cost-sharing is not a uniform burden across income levels, and for many retirees the amounts could be significant. The author flags that the Medicare Part A trust fund — which covers hospital costs — faces depletion on a timeline similar to Social Security, making some form of change likely, and urges anyone planning for retirement to monitor developments on both programs.