Inquiry--Fall 2004
This article analyzes a change in “Medigap” regulations that occurred in
Missouri in 1999. It allows Medicare beneficiaries in the state to switch to a
different carrier each year so long as they retain the same standardized policy
type, without losing their open enrollment privileges. The analysis is based on
a comparison of various outcomes in Missouri and those in two comparison states,
Kansas and Florida. We found little evidence that the policy change affected
premiums charged by insurance carriers in Missouri, but conclude that other
desirable aspects of the change make it potentially attractive for other states
to follow.