Does anyone know how the Medigap policies are funded? Surely the modest rates do not cover the outlay. I’ve tried to look into it and couldn’t track it down. The companies advertise like nothing else on earth, so someone is making some money there.
“Does anyone know how the Medigap policies are funded? Surely the modest rates do not cover the outlay.”
My mother had a Medigap policy.
In her last year she paid about $2,000 in premiums and got about $2,000 in reimbursements for her lung cancer care.
The rates are not “modest”. They are carefully set by actuarial experts. Some customers make out like bandits because most Americans would rather pay $2,000/year to an insurance company than $4,000 once in their lives to a “rich” doctor to save their lives. I hate arrogant doctors, but I hate stupidity even more.