David Thomas: “Mr. Chairman, Medigap is a wraparound insurance program. There are ten standardized Medigap programs that are made…”

“Mr. Chairman, Medigap is a wraparound insurance program. There are ten standardized Medigap programs that are made available by HCFA. The argument is that these military retirees will be giving up their Medigap insurance. Now, I know as you begin to talk about how this program is supposed to fit together, some eyes begin to glaze over, and all you are supposed to do is just say, it ought to be done, and therefore it is done. Well, I will tell you, in trying to work with the DOD subvention program, and now successfully with the VA, if you are really interested in looking out after the interests of these military retirees, you had better have in writing exactly what is going to occur. The Federal Employees Health Benefit Program does not match up to any of the Medigap programs. What are the policies? What are the premiums? You are creating a structure which creates a separate risk pool. The premiums may be outrageous. You have no protections for the military retirees in that regard.”