Drug Costs Drive Up Medigap Premiums
Rising drug costs are a prescription for disaster as many cash-strapped elders go without necessary medicine. Medigap premiums vary widely from plan to plan and state to state.
Want a Medigap plan that will cover your prescription drugs? Hey, who doesn't? Well, be prepared to pay premiums that are more than double the cost of regular plans that do not cover drugs. This finding is based on a nationwide study of premium quotes from 171 companies.
Conducted by Weiss Ratings Inc, the study shows a pattern revealing a marked contrast in premium rate increases between plans offering prescription drug coverage and those that don't. The premium increase on the Medigap plans that do not cover presription drugs averaged about 15 percent for the three-year study period (1998-2000). In contrast, the plans that cover prescription drugs averaged increases of 37 percent, more than double.
The premium increases also vary by location. States with the largest average premium increases, among the drug benefit plans, were Alaska and Arizona. States with the lowest increases were New York and Connecticut.
Senior citizens shopping for the least expensive Medigap policies can obtain a "Health Insurance Report for Seniors" for a fee from Weiss Ratings. The Florida-based service monitors rates offered by HMOs, health insurers, Blue Cross Blue Shield plans, and others. Additional information is available at: 1-800-289-9222.
See related articles in the AgeVenture archives.
Expensive Drugs Bad Medicine for Seniors
Florida's Prescription Drug Affordability Act
AARP Campaigns for Better Drug Coverage
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