A recent Center for American Progress report, “Escaping the Medigap Trap: A Path to Real Choice in Medicare,” presents policy reforms to address the “Medigap trap” – the term often used to refer to the experience of beneficiaries who would like to switch to Traditional Medicare from a private Medicare Advantage (MA) plan that does not meet their needs but are prevented from doing so because of limited access to Medigap supplemental coverage in most states. The report calls for establishing an out-of-pocket spending cap in traditional Medicare, reducing the federal overpayments that give Medicare Advantage an artificial edge, strengthening disclosure requirements so beneficiaries understand the restrictions they are accepting, and expanding guaranteed-issue Medigap protections – paired with market-stabilizing reforms – to support those who would like to exercise their choice of switching from MA to Traditional Medicare.
March 19, 2026 – K. Kertesz