MEDIGAP INSURANCE REFORM

WHEREAS, since the repeal of the Catastrophic Coverage Act earlier this year, the cost of Medigap policies has increased by 20 percent to 30 percent; and

WHEREAS, 75 percent of the elderly will spend about $10 billion this year on Medigap premiums; and

WHEREAS, for the most comprehensive coverage, premiums have increased by more than $400 per year, and individuals now must pay $800 to  $1,200 annually for this coverage; and

WHEREAS, many senior citizens must choose between accepting these increases and dropping their policies because most insurers require a substantial waiting period before covering preexisting conditions; and

WHEREAS, the vast majority of the states do not require that Medigap premium increases be formally approved before going into effect; and

WHEREAS, Rep. Edward R. Roybal (Calif.), Chairman of the House Aging Committee's Subcommittee on Health and Long-term Care, has launched an intensive investigation of Medigap insurance carriers' practices:

RESOLVED, that AFT support the enactment of legislation that would provide for federal guidelines re­quiring states to adopt formal mechanisms for reviewing or approving premium increases; allow seniors to switch policies without penalty; and provide for a wide range of options in the purchase of Medigap policies.