Low-Income, Minority Beneficiaries Most Likely To Be Affected by Cuts in M+C, Study Says

Low-income and minority Medicare beneficiaries rely "disproportionately" on Medicare+Choice to provide supplemental health coverage, a new study conducted by Emory University and released April 30 by the BlueCross BlueShield Association has found. The study, which examined demographics of M+C beneficiaries and what action such beneficiaries would take if their M+C coverage ended, determined that 85% of all Medicare beneficiaries have some type of supplemental insurance, including Medicaid, Medigap, M+C and employer-sponsored coverage. For purposes of the study, researchers discounted beneficiaries dually eligible for Medicaid and those with employer-sponsored coverage. Of the remaining beneficiaries, 38.5% had M+C coverage, 37.7% had Medigap coverage and 23.8% had no supplemental insurance. Of beneficiaries with annual incomes higher than $30,000, 43.5% had Medigap coverage, and 40.8% were enrolled in M+C plans, the study says. In addition, the study determined that 41% of M+C beneficiaries nationwide are concentrated in six areas -- Southern California, Northern California, Philadelphia, South Florida, New Jersey and New York City -- and tend to have lower incomes and be African-American or Hispanic (Yochelson, BNA News Medicare Report, 5/3).

Losing M+C
If M+C coverage were not available, 52% of current beneficiaries would purchase "relatively more expensive" Medigap coverage, 30% would not be able to afford Medigap policies and would likely not purchase supplemental coverage, and 18% would seek Medicaid coverage, the study says. African-Americans would be particularly affected by the end of M+C, the study states, adding that three out of five black beneficiaries would likely go without supplemental coverage (Thorpe et al., "Medicare+Choice: Who Enrolls?" 4/25). To increase the viability of the M+C program, BlueCross has asked Congress to reimburse providers at a new minimum payment equal to 100% of local fee-for-service costs and to "develo[p] options to increase the participation of PPOs" in M+C plans (BCBSA release, 4/30). The report is available online. Note: You must have Adobe Acrobat Reader to view the report.