Florida Seniors and Florida Medicare Advantage Plans

A Medicare advantage plan will help you reduce your expenses and provide extra benefits that were not covered in the guidelines of the original Medicare program. They were created to meet the changing needs of senior citizens in healthcare. It is common for people to inquire about the difference between a Medigap policy and a Medicare advantage plan. These two terms can be used interchangeably since they mean exactly the same thing. Additional plans help in paying for the “gaps” in the original Medicare coverage, hence the term. Such gaps refer to the out-of-pocket expenses you are responsible for, such as coinsurances and deductibles.

In the state of Florida, you should expect to pay up to 60% extra for your standard Medicare Advantage Plan. Florida prices are among the highest in the country.  The temperate climate, the simple lifestyle, the vibrant and active community of senior citizens, and the lower cost of housing and taxes in Florida are some of the reasons why very many Americans retire here each year.

Florida has the highest percentage of citizens who are 65 years and older in the nation, with 17.7% of the total population belonging to this category. There are currently more than 3,339,000 people in Florida who are senior citizens. More than 3,300,000 people are Medicare beneficiaries in Florida. Because medical costs increases as we get older, having a very large number of aging people will affect the cost of doing business for any insurance company that sells 2019 Medicare Advantage plans to that group. The increased claims costs have resulted in some companies refusing to offer plans in Florida. This limits choices for seniors. This also means that the premiums are more expensive.

Another factor that affects Florida advantage rates are some of the regulations regarding insurance in the state. The rates tend to be good for the consumer, but can also cause higher prices. All Medicare Advantage plans in Florida must be sold as “issue age” vs. “attained age”. For issue age pricing, the amount of the premium depends on your age when you bought the policy. The attained age plan increases with age as you get older, and these increases are usually significant. Issue age policies do not have age-related increments; they are linked to increments in deductibles for Medicare and other co-payments and have a much smaller impact on the cost of the plan, leading to predictable future costs.

All insurance firms who wish to sell Medicare advantages in Florida are given a mandate by the state to make plans available to persons who qualify for Medicare below the age of 65. They include beneficiaries who have typically suffered disability for 24 months. Such gives them the opportunity to protect themselves against medical costs and better quality of care. This also creates a higher risk, higher cost category of insured. These are just a few of the factors that contribute to the increased cost of Medigap plans in Florida. If you are a senior citizen in Florida, make it a point of duty to be pro-active and compare prices and plans so you can be sure that you get the most benefit for your health care and that you are buying the right coverage for you.