Hands off Medigap, state insurance officials plan to tell Congress

WASHINGTON — State insurance commissioners are preparing some stern words of advice for members of Congress who are trying to reduce the federal budget deficit: Don't touch Medicare supplemental insurance.

Next week, the bipartisan National Association of Insurance Commissioners is expected to send a letter to Congress opposing changes that would require beneficiaries to pay a higher share of the cost of their supplemental Medigap insurance. Seven million Medicare beneficiaries pay monthly premiums for these policies, which cover a portion of medical expenses Medicare doesn't.

The letter will warn Congress that such proposals could cause various problems for beneficiaries and insurers and may even be illegal, said Mary Beth Senkewicz, Florida's deputy insurance commissioner. She heads the association's senior issues task force and is shepherding the letter through the approval process. The letter, which the senior issues group approved unanimously Thursday, won't be released to the public until final approval next week.

Increasing cost-sharing for current policyholders would violate state and federal laws that require guaranteed, renewable benefits, Senkewicz said, adding that it also would cause "serious confusion" for seniors.

Medigap plans have been targeted because some studies have shown that beneficiaries tend to use more Medicare services.