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Related Experiment Video

Updated: Jul 6, 2026

Inverse Probability of Treatment Weighting (Propensity Score) using the Military Health System Data Repository and National Death Index

Inverse Probability of Treatment Weighting (Propensity Score) using the Military Health System Data Repository and National Death Index

Published on: January 8, 2020

Medigap coverage and Medicare spending: a second look.

Jeff Lemieux¹, Teresa Chovan, Karen Heath

¹Center for Policy and Research, America's Health Insurance Plans (AHIP), Washington, D.C., USA. jlemieux@ahip.org

Health Affairs (Project Hope)

|March 12, 2008

Summary

Medicare supplemental insurance (Medigap) offers financial protection for beneficiaries. This study suggests Medigap

Area of Science:

Health Economics
Public Policy
Insurance Studies

Background:

Medicare supplemental insurance (Medigap) is crucial for financial protection among Medicare beneficiaries.
Prevailing policy views suggest Medigap significantly increases Medicare claims costs.
Understanding Medigap's true impact on Medicare spending is vital for policy decisions.

Purpose of the Study:

To re-evaluate the effect of Medigap coverage on Medicare spending.
To challenge the conventional assumption that Medigap substantially raises Medicare costs.
To provide a more accurate estimate of potential Medicare cost savings from Medigap restrictions.

Main Methods:

Utilized detailed diagnosis data from three major Medigap insurers.
Incorporated information from the Medicare Current Beneficiary Survey.

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Last Updated: Jul 6, 2026

Inverse Probability of Treatment Weighting (Propensity Score) using the Military Health System Data Repository and National Death Index

Inverse Probability of Treatment Weighting (Propensity Score) using the Military Health System Data Repository and National Death Index

Published on: January 8, 2020

Analyzed data from the Medicare 5 percent sample file for comprehensive insights.

Main Results:

Findings indicate that previous studies may have overestimated Medigap's impact on Medicare costs.
The study suggests that the actual increase in Medicare spending attributable to Medigap is lower than commonly believed.
Analysis provides evidence contrary to the widely held belief about Medigap's cost-raising effects.

Conclusions:

Previous estimates of Medigap's influence on Medicare costs likely require revision.
Projected Medicare cost savings from restricting Medigap coverage may be overstated.
The study calls for a re-evaluation of policies based on the current understanding of Medigap's financial impact.