The extent of ownership and the characteristics of Medicare supplemental policies

Abstract

Whether Medicare beneficiaries own private health insurance to supplement Medicare, and the characteristics of the policies they do own, are of interest both to public policy makers and to insurers. In this analysis of responses to a random survey of Medicare beneficiaries and of copies of the private insurance policies owned by these beneficiaries, the following variables were found to be important determinants of policy ownership: income, education, race, and self-perceived health status. It was also found that although most policies provide comprehensive coverage for Medicare copayments, few provide coverage for the many services and products needed by the elderly that are not covered by Medicare.