WASHINGTON – Medigap policyholders are “overwhelmingly satisfied” with their coverage and say it provides good value for their money, according to the Blue Cross Blue Shield Association and America's Health Insurance Plans.

"Medigap policies provide important protections from Medicare's high out-of-pocket costs," said Scott P. Serota, BCBSA's president and CEO. "Seniors are highly satisfied with these policies."

A new survey, conducted by American Viewpoint on behalf of BCBSA and AHIP, found that 88 percent of Medigap policyholders are satisfied with their coverage and 62 percent are very satisfied. Also, 77 percent said Medigap provides excellent or good value for their money and 87 percent would recommend Medigap to a friend or relative.

"Nearly 10 million seniors across the country rely on Medigap for their health security," said Karen Ignagni, president and CEO of AHIP. "Seniors like the predictability, financial security and peace of mind these plans provide."

According to the survey, policyholders like Medigap coverage because it allows them to see the doctor of their choice, provides financial security and peace of mind and makes it easier to deal with medical bills and paperwork.

Other findings include:

• Medigap policyholders are unwilling to pay higher deductibles or other out-of-pocket expenses in order to reduce their premiums (69 percent).
• A majority (68 percent) of policyholders would oppose Congressional action that would require policyholders to pay annual deductibles and other out-of-pocket expenses for services that are currently covered by their Medigap policies.
• If policyholders could no longer afford to purchase Medigap insurance, their main concerns would be dealing with medical bills/Medicare (22 percent), the possibility of high costs due to illness (18 percent), out-of-pocket costs for health care (17 percent) and loss of financial security and peace of mind (13 percent).

The telephone survey was conducted March 16-22. In all, 500 telephone interviews with Medicare enrollees who have self-purchased Medigap plans were conducted. The sample was drawn from a targeted Survey Sampling database of those ages 65 and older and respondents were randomly selected.