CADIagent Medigap is expensive, inefficient, and often uses higher prices to discriminate against the oldest beneficiaries. Medigap policies that cover prescription drugs are expensive relative to comparable policies that do not cover drugs. Additionally, premiums vary tremendously from place to place, and from beneficiary to beneficiary. Because it is sold to individuals, Medigap does not offer beneficiaries the kind of premiums that result from group purchasing. This also adds to the administrative costs per policy, which are typically two to three times more than that of group coverage.
Costs increase with age as well as health inflation.
It also disproportionately affects women since they comprise nearly three-fourths of people over age 85.