Medigap Reforms: Potential Effects of Benefit Restrictions on Medicare Spending and Beneficiary Costs July 20, 2011 Report As part of several debt-reduction and Medicare-reform proposals, some policymakers propose to prohibit Medicare supplemental insurance policies (known as Medigap) from covering all of enrollees’ out-of-pocket Medicare costs, which some believe leads to higher use of services and higher Medicare spending. Such changes would expose Medigap enrollees – currently about…