The number of people choosing Medigap coverage is increasing, according to an annual report by America's Health Insurance Plans (AHIP). The report found that enrollment in Medigap coverage increased by 100,000 individuals, from 9.7 million in December 2010 to 9.8 million in December 2011. The report also highlights which Medigap options are most popular.

Medigap coverage provides seniors with financial security and peace of mind about their health care coverage. By filling in some of the holes that traditional Medicare does not cover, Medigap policies help budget for the predictable and unpredictable costs associated with an injury or illness. Seniors have a variety of Medigap coverage options that allows them to pick the plan that best fits their individual needs.

Key findings from the report include:

• Most Medicare beneficiaries obtain coverage that provides benefits beyond traditional Medicare (Part A or B), whether through Medigap, Medicaid, employer-based retiree plans, or comprehensive coverage through Medicare Advantage.
• In 2011, most Medicare beneficiaries with Medigap coverage were enrolled in Plan F (51 percent) and fourteen percent were enrolled in Plan C. Both of these plans cover 100 percent of the deductibles and coinsurance not covered by Medicare.
• Many new Medicare beneficiaries are choosing to enroll in plans that contain at least some cost-sharing. High-deductible Plan F, and newer standardized Medigap plans K, L, M, and N—which have copayments, coinsurance or deductibles—made up 23 percent of new Medigap purchases in 2011. Plan N, which includes cost sharing of up to $20 for physician office visits and up to $50 for certain emergency room visits, represented 18 percent of newly purchased Medigap policies in 2011 and was the most popular of the newer plans.

The study examined data from the National Association of Insurance Commissioners (NAIC) and from an AHIP member survey of newly purchased cost-sharing policies issued through 2011 by Medigap carriers representing about 45 percent of the national Medigap market.

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