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Retiree health benefits
1Lister Hill Center for Health Policy, University of Alabama, Birmingham 35294.
Annual Review of Public Health
|January 1, 1993
Summary
Most elderly Medicare beneficiaries have private supplemental insurance, often Medigap or employer-sponsored plans. This coverage, particularly first-dollar plans, increases healthcare utilization and Medicare costs.
Area of Science:
- Health Economics
- Gerontology
- Public Health Policy
Background:
- 80% of elderly Medicare beneficiaries possess private supplemental insurance.
- 50% of these beneficiaries hold Medigap (privately purchased) coverage.
- Demographics indicate private coverage holders are younger, more educated, and disproportionately white.
Purpose of the Study:
- To analyze the characteristics of elderly Medicare beneficiaries with private supplemental insurance.
- To investigate the prevalence and nature of Medigap and employer-sponsored retiree health benefits.
- To understand the impact of supplemental coverage on healthcare utilization and Medicare costs.
Main Methods:
- Analysis of existing data on Medicare beneficiaries and their supplemental insurance coverage.
- Examination of demographic trends among individuals with private coverage.
- Review of benefit coordination mechanisms between employer plans and Medicare.
Main Results:
- Medigap holders are more likely to be women; employer-related coverage holders are more likely to be men.
- Multiple coverage is rare (approx. 20% of supplemental holders) and found in younger, more educated individuals.
- Employer-sponsored plans, covering 8.4 million beneficiaries, often feature broad benefits but coordination can increase out-of-pocket costs.
Conclusions:
- Supplemental retiree coverage, especially first-dollar plans, increases healthcare service use.
- This increased utilization contributes to higher overall Medicare expenditures.
- Future trends suggest a continued reliance on employer-sponsored health benefits for retirees.