Coalition to Promote Choice for Seniors National Medigap Enrollees Survey Gary A. Ferguson Senior Vice President and Gina Scime Research Analyst N = 500 Medigap Enrollees, Nationwide. April 1-4, 2005; Margin of Error = ± 4.5%

Methodology The Coalition to Promote Choice for Seniors commissioned American Viewpoint, Inc. to conduct a national survey of Medigap enrollees. In all, 500 telephone interviews with Medicare enrollees who have self-purchased Medigap plans were conducted between April 1 and April 4, 2005. The sample was drawn from a targeted Survey Sampling database of those age 65 and older and respondents were randomly selected. All surveys are subject to errors caused by interviewing a sample of persons rather than the entire population. The margin of error for N=500 is +4.5% at a 95% confidence level.

Enrollees are overwhelmingly satisfied with their Medigap coverage How satisfied are you with your Medigap coverage? Total Satisfied 90% Total Not Satisfied 7%

Most enrollees are also satisfied with the Medicare program How satisfied are you with the Medicare program? Total Satisfied 87% Total Not Satisfied 6%

Eight in ten say that Medigap is an excellent or good value Thinking about the monthly premiums you pay for your Medigap supplemental policy and the services that are covered, how good a value is your Medigap policy?

Enrollees value coverage of hospital and physician expenses most in their Medigap plan Which of the following benefits do you value the most in your Medigap plan?

Most enrollees would recommend their Medigap coverage to a friend or relative Would you recommend Medigap coverage to a friend or relative when they turn 65 and enroll in Medicare?

More than half oppose paying an annual deductible/part of cost for doctor visits and hospital stays Some people in Washington have suggested that Medigap causes seniors to use more health care services because it provides coverage for all out-of-pocket expenses. Would you favor or oppose a proposal that would require everyone with Medigap insurance to pay an annual deductible, such as the first $250 of their expenses, and some part of the cost for most doctor visits and hospital stays? Total Favor 27% Total Oppose 58%

Eight in ten enrollees are concerned about having out-of-pocket expenses for health care When you are deciding on purchasing health care services, how concerned are you about whether or not you will have out-of-pocket expenses?

A majority is not willing to pay higher deductibles or out of pocket expenses in order to reduce monthly premiums Would you be willing to pay higher deductibles or other out of pocket expenses in order to reduce the monthly premiums you pay for your Medigap policy?

A majority would be less likely to reelect a Member of Congress who votes to eliminate their ability to purchase Medigap insurance Would you be more or less likely to vote to reelect a Member of Congress who votes to eliminate your ability to purchase Medigap insurance? Total 19% Total 65%

Summary & Conclusions Slide 3. Medigap enrollees express overwhelming satisfaction with their coverage. Overall, 90% are satisfied and only 7% are dissatisfied. - Satisfaction increases with age (from 64% very satisfied among those age 65-69 to 79% among those age 80 and above). - Satisfaction is strong across political and demographic groups - The intensity of satisfaction is higher for Medigap than for Medicare Slide 4. These Seniors also express a high level of satisfaction with the Medicare program. In all, 87% are satisfied and only 6% are dissatisfied. - The intensity of satisfaction again increases with age (from 43% very satisfied among those age 65-69 to 60% very satisfied among those age 75 and older). Slides 5 & 6. A majority of enrollees say that their Medigap policy is an excellent (32%) or good (48%) value. 14% say it represents a fair value and 3% a poor value. - Results are consistent by region, gender, age, partisanship and income.

Summary & Conclusions Slide 7. The vast majority (84%) would recommend Medigap coverage to a friend or relative when they turn 65 and enroll in Medicare. Slide 8. A majority (58%) opposes requiring all Medigap enrollees to pay a $250 annual deductible and some part of the cost for most doctor visits and hospital stays. Only 27% favor this requirement. - Opposition is particularly high among those age 65 to 69 (70%), women 65-74 (69%), African-Americans (79%) and those not satisfied with Medicare (78%). A majority of all partisan groups oppose. Slide 9. More than half (56%) of Medigap enrollees are very concerned about having out-of-pocket expenses when deciding on purchasing health care services. Another 27% are somewhat concerned and 15% are not concerned. - Women 65-74 (67% very concerned), blacks (76%), those dissatisfied with Medigap (69%), those dissatisfied with Medicare (70%) and those with incomes under $20,000 (71%) are most concerned about out-of-pocket expenses.

Summary & Conclusions Slide 10. Only 22% of enrollees would be willing to pay higher deductibles or other out-of-pocket expenses in order to reduce monthly premiums for their Medigap policy. Another 64% are unwilling to pay higher deductibles and 13% are undecided. Willingness decreases with age (from 27% of those age 65-69 to 15% of those age 80 and older). - Men 75+ (71% no), African-Americans (86%), those who oppose requiring a deductible (74%), those with fair or poor health (74%), those with five or more daily prescriptions (72%) and ticket-splitters (70%) are particularly unwilling to pay for these increases. Slide 11. A majority (65%) of Medigap enrollees would be less likely to vote to reelect a Member of Congress who votes to eliminate their ability to purchase Medigap insurance. More than half (51%) say they would be much less likely and only 19% say they would be more likely to reelect. - Members of Congress who vote to eliminate Medigap face repercussions from a majority of all age groups and voter types. 71% of those 65-69, 63% of those 70-74, 68% of those 75-79 and 60% of those 80 and above would be less likely to reelect. Similarly, 67% of Republicans, 70% of Ticket-splitters and 64% of Democrats would be less likely to reelect based on this vote.