To understand the difference between the demographic profiles of Medigap coverage (Medicare Supplement) consumers and Medicare Advantage consumers.
Medigap Consumer Profile
Based on a Deft Research study which "included 1,359 Medicare 'age-ins,' or people ages 64 to 65.25," around "41% of the age-ins said they were likely to sign up for Medigap coverage." Of those participants who are leaning towards Medigap coverage, 47% said that "they were very or extremely certain that they would buy Medigap coverage."
It appears that "Medigap coverage is substantially more common for Medicare beneficiaries ages 65 and older than it is for younger Medicare beneficiaries, many of whom qualify for Medicare because of a long-term disability." It is believed that "the low enrollment in Medigap by beneficiaries under age 65 is likely due to the absence of federal guarantee issue requirements for younger Medicare beneficiaries with disabilities and higher rates of Medicaid coverage for people on Medicare with disabilities who tend to have relatively low incomes."
In terms of geographical location, "the share of beneficiaries with Medigap varies widely by state—from 3 percent in Hawaii to 51 percent in Kansas."
Based on the record in 20 states, "at least one-quarter of all Medicare beneficiaries have a Medigap policy." The "states with higher Medigap enrollment tend to be in the Midwest and plains states, where relatively fewer beneficiaries are enrolled in Medicare Advantage plans."
Around 14.1 million Americans were enrolled in a Medicare Supplement insurance (Medigap) policy in 2018. This is a sharp increase from the 9.7 million Medigap consumers in 2010.