Department  of  Health  and  Human  Services 
OFFICE  OF 
INSPECTOR  GENERAL 
Medicare  Beneficiary  Satisfaction 
With 
Supplemental  Health  Insurance 
# SERVIC&$ 
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$  GIBBS  BROWN 
#  JUNE 
<  Inspector  General
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J--~  JANUARY  1997 
*>daa  0EI-04-93-O0154  OFFICE  OF INSPECTOR  GENERAL 
The mission  of the Office of Inspector  General  (OIG),  as mandated  by Public  Law 95-
452,  is to protect  the integrity  of the Department  of Health  and Human  Services  programs 
as well as the health  and welfare  of beneficiaries  served by them.  This statutory  mission 
is carried  out through  a nationwide  program  of audits,  investigations,  inspections, 
sanctions,  and fraud  alerts.  The Inspector  General  informs  the Secretary  of program  and 
management  problems  and recommends  legislative,  regulatory,  and operational  approaches 
to correct  them. 
Office  of Evaluation  and Inspections 
The  Offik  of Evaluation  and Inspections  (OEI) is one of several  components  of the Office 
of Inspector  General.  It conducts  short-term  management  and program  evaluations  (called 
inspections)  that  focus on issues of concern  to the Department,  the Congress,  and the 
public.  The inspection  reports  provide  fiidings  and recommendations  on the efficiency, 
vulnerability,  and effectiveness  of departmental  programs. 
OEIS Atlanta  Regional  Office prepared  this report  under the direction of  Jesse J. Flowers, 
Regional  Inspector  General,  and Christopher  Koehler,  Deputy  Regional  Inspector  General. 
Principal  OEI staff included: 
REGION  HEADQUARTERS 
Betty Apt,  Team  Leader  Winnie  Walker,  Program  Specialist 
James  Green,  Contractor  Stuart  Wright,  Program  Specialist 
Jackie  Watkins,  Program  Analyst  Brian Ritchie,  Technical  Suppoti 
Joe Townsel,  Program  Analyst  Barbara  Tedesco,  Statistician 
Tamrny Hipple,  Statistician 
To obtain  a copy of this report,  call the Atlanta Regional  Office at (404) 331-4108.  ll,@Nm  ~ 
*+4  % 
.*  L  DEPARTMENT  OF HEALTH&  HUMAN  SERVICES  Office  of  Inspector  General 
: 
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~,w Memorandum 
Date  ~AFl221997 
+9
From	 June  Gibbs Brown 
Inspector Gener 
S@xt OIG Final Repor L: ?
Medicare Beneficiary  Satisfaction  with 
Supplemental  Hea h Insurance,  0EI-04-93-O0154

To	 Bruce C. Vladeck 
Administrator 
Health  Care Financing Administration 
During our 1995 survey of Medicare beneficiary  satisfaction,  we

asked  942 beneficiaries  about their satisfaction  with insurance

that supplements  Medicare  coverage.  We did this at the request

of Health  Care Financing Administration  (HCFA) staff who

expressed  an interest  in this issue.  Attached  is our analysis

of beneficiary  responses  to the questions HCFA staff suggested

we include  in our survey.

Our survey  indicates  that 84 percent of beneficiaries  have

medical  coverage  in addition to Medicare,  and they are

satisfied  with their supplemental policies.  Most said they

would  call the insurance  company that issued the supplemental

policy  if they had problems with their supplemental  policies.

We hope you  find this information useful.  We are not making

recommendations,  and there is no need for you to respond to

this.  Nevertheless,  we would be glad to receive any comments

you have.  Also , if you have any questions, please  contact me

or George Grob, Deputy  Inspector General for Evaluation  and

Inspections,  or have your staff contact Mary Beth Clarke at

(202) 619-2481.

Attachment
 PURPOSE 
To determine  beneficiary  satisfaction  with insurance  that supplements  Medicare. 
BACKGROUND 
During  our  1995 survey of Medicare  beneficiary  satisfaction,  we asked 942 beneficiaries

about their  satisfaction  with insurance  that supplements  Medicare  coverage.  Several

people  in HCFA  expressed  an interest  in this subject,  and suggested  questions  for us to

include  in our annual  survey  on beneficiary  satisfaction.

In September  1995, we mailed  a questionnaire  to  1244 randomly-selected  Medicare

beneficiaries  for whom Part  B claims had been filed in Calendar  Year  1994.  We excluded

from  our sample beneficiaries  who were enrolled  in an HMO.  A total of 942

beneficiaries  returned  completed  questionnaires,  for a response  rate of 76 percent.

A summary  of major  findings  of that survey follows.

BENEFICIARIES  HAVE  SUPPLEMENTAL  INSURANCE 
Eighty-four  percent  of the beneficiaries  said they have medical  coverage  in addition to 
Medicare. 
Thefollowintga bles howsthetypesofsupplementianls urancbee neficiarsiaeisdt
hey

have.

III nsuranTcher oughC urr.notr Forrn.Ern qioY.r  I  42%  II
Private MedicarSeu pplement(aMle
digap)  32%
Medicaid  12%

I 
Other  3% 
*Percentages total more than 84% because some benejkiaries  said they have more than one 
type ofinsurance.  BENEFICIARIES  ARE SATISFIED 
Eighty-eight  percent  of beneficiaries  who have supplemental  policies  are satisfied  with 
them.  Only 5 percent  were dissatisfied. 
53%  Very  $atisfiecf 
2%  Very  Dissatisfied 
3%  Generally  Die6atie fied 
%  Neither  Satiafied 
nor  Dissatisfied 
35%  Generally  tlatisfled 
Responses  of beneficiaries  who have either Medigap  or insurance 
through  former  or current  employment  are included.  BENEFICIARIES  CALL INSURANCE  COMPANIES  IF PROBLEMS  ARISE 
Fifty-eight  percent  of beneficiaries  said they would call the insurance  company  that 
issued the policy if they had problems  with their supplemental  policies. 
Few beneficiaries  said they would call their  State insurance,  counseling,  and assistance 
offices. 
Insurance Company that Issued Policy  I  58% 
Medicare Carrier  17% 
StatIen suranCcoem
 mission  10%
StatIen surancCeo,u nselinagn,d AssistanOcfef
Ice  3%

Other  2%

Dont Know  11% 
Responses of beneficiaries  who have either Medigap or insurance through former  or current
employment are included.  Percentages total more than 100%because some beneficiaries said
they would contact more than one a,qency.
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