As Congress looks for ways to reduce the national debt and rein in Medicare spending, some policymakers have offered proposals, including the President’s Plan for Economic Growth and Deficit Reduction released this week and last year’s Bowles-Simpson Commission report, to reform the existing Medicare supplemental insurance (Medigap) market with an eye toward savings.

To provide context for these ongoing policy discussions, this brief examines the characteristics of the one-in-five Medicare beneficiaries with Medigap coverage and the current state of the Medigap market. The brief focuses especially on Medigap plans C and F, which offer first dollar coverage, providing full payment for both Part A and Part B deductibles and other cost-sharing requirements. Many of the proposed Medigap reforms would primarily affect these types of plans.

The brief is a product of the Foundation’s Project on Medicare’s Future, which focuses on producing timely analysis of leading reforms affecting people on Medicare.

Issue Brief (.pdf)