Aug 012011 published an article discussing a Federal deficit reduction plan that could effect everyone planning on or currently using Medicare supplemental insurance.   The proposal is based off of a study sponsored by the Kaiser Family Foundation.  The study found that if the Government limited the coverage of Medicare supplemental insurance then Medicare would save money because people would be less inclined to use their Medicare benefits.  This could be a win for people who don’t use their Medicare supplement insurance very much because their premiums would go down.  But for anyone who relies on Medgap this would cause them to pay more out of pocket to cover higher co-pays and deductibles!  Wonder what the long term cost would be to Medicare when people stop seeking treatment early because of higher cost? Interesting topic.  You can read the article here: Medigap limits could save Medicare money

Joel Moyer