Department of Health and Human Services 

OFFICE OF 

INSPECTOR GENERAL 

Medicare Beneficiary Satisfaction 

With 

Supplemental Health Insurance 

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JUNE GIBBS BROWN 

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# Inspector General %‘3e+ ~ 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. 

OEI’S 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. 
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.* DEPARTMENT OF HEALTH& HUMAN SERVICES Office of Inspector General : 

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Memorandum 

Date ~AFl221997 

From	 June Gibbs Brown 

S@xt OIG 

Inspector 

Final Repor 

Gener +’9”

: “Medicare Beneficiary Satisfaction with 

Supplemental HeaL?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. 

The following table showsthetypesofsupplemental insurance beneficiaries said
they


have.


IInsurance Through Curr.nt orForrn.r EnqioY.r I 42% II

Private Medicare Supplemental
 (Medigap) 32%

Medicaid 12%


Other 3% I 

*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% 

State Insurance
 Commission 10%

State Insurance, Counseling, andAssistance
 OffIce 3%


Other 2%


Don’t 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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