United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-05-09 monographic deposited born digital 15 p. GA 1.13:GAO-01-713T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-713T P0b002ee1803777ab f:d01713t DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-01-713T machine generated eng fdlp REPORT GAOREPORTS-GAO-01-713T GAO-01-713T Drugs Health insurance Health insurance cost control Insurance premiums Cost sharing (finance) Medicaid Program Medicare Choice Program Medicare Program Medigap Supplementary Medical Insurance Trust Fund Testimony A00971 Medicare provides valuable and extensive coverage for beneficiaries' health care needs. Nevertheless, significant gaps leave some beneficiaries vulnerable to sizeable financial burdens from out-of-pocket expenses. Medigap is an important source of this supplemental coverage because it is widely available to beneficiaries. This testimony discusses (1) beneficiaries' potential financial liability under Medicare's current benefit structure and cost-sharing requirements, (2) the cost of Medigap policies and the extent to which they provide additional coverage, and (3) concerns that Medigap's so-called ''first dollar'' coverage undermines the cost control incentives of Medicare's cost-sharing requirements. GAO found that (1) Medicare's benefits package and cost-sharing requirements leave beneficiaries liable for high out-of-pocket costs, (2) Medigap policies pay for some or all Medicare cost-sharing requirements but do not fully protect beneficiaries from potentially significant out-of-pocket costs such as prescription drug coverage, and (3) Medigap first-dollar coverage eliminates the effect Medicare's cost-sharing requirements could have to promote prudent use of services. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-713T/html/GAOREPORTS-GAO-01-713T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-713T/pdf/GAOREPORTS-GAO-01-713T.pdf GAO-01-713T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-713T Testimony GAO-01-713T; Medicare: Cost Sharing Policies Problematic for Beneficiaries and Program; Drugs Health insurance Health insurance cost control Insurance premiums Cost sharing (finance) Medicaid Program Medicare Choice Program Medicare Program Medigap Supplementary Medical Insurance Trust Fund Volume 111 Page 330 111 Stat. 330 Public Law 101-508 Public Law 105-33