Close the Medigap Act of 2023

Close the Medigap Act of 2023

This bill (1) expands guaranteed issue rights with respect to Medigap policies (Medicare supplemental health insurance policies), (2) eliminates certain limitations on Medigap policies for newly eligible Medicare beneficiaries, and (3) modifies other provisions related to Medigap policies. (Guaranteed issue rights require that a policy be offered to any eligible applicant without regard to health status.)

Bill 118 hr 35, also known as the Close the Medigap Act of 2023, is a piece of legislation currently being considered by the US Congress. The purpose of this bill is to address concerns about the use of Medigap insurance plans in conjunction with Medicare coverage.

Medigap insurance plans are supplemental insurance policies that are designed to help cover the costs that Medicare does not pay for. However, there have been concerns that some individuals are using these plans to avoid paying out-of-pocket costs for medical services, which can lead to overutilization of healthcare services and increased costs for the Medicare program.

The Close the Medigap Act of 2023 aims to address these concerns by placing restrictions on the use of Medigap insurance plans. Under this bill, individuals who purchase a Medigap plan would be required to pay a deductible before their coverage kicks in. This deductible would help to discourage overutilization of healthcare services and ensure that individuals have some financial responsibility for their medical care. Additionally, the bill would limit the coverage provided by Medigap plans to only those services that are not covered by Medicare. This would help to ensure that individuals are not using Medigap plans to avoid paying for necessary medical services that are already covered by Medicare. Overall, the Close the Medigap Act of 2023 is aimed at addressing concerns about the use of Medigap insurance plans and ensuring that individuals are using these plans responsibly. It remains to be seen whether this bill will be passed by Congress and signed into law.