Every state is unique in how Medicare Supplement plans are priced and the quality of Medicare Advantage plans that are available. In this article we will discuss which Medicare plans you should consider of you are researching the best Medicare Supplement Plans for Florida residents.
When it comes to Medicare,
Florida is unique in three ways.
- Florida is one of just four states that require Medicare Supplement policies is be priced using “Issue Age” standards. That means that your Medicare Supplement cannot increase in price every year just because you are older. However, it can still go up in price due to inflation. Expect your policy to increase in cost by 3% to 4% per year in most cases.
- On average, across the country, only three out of ten seniors choose a Medicare Advantage plan over keeping their Original Medicare and adding a Supplement. However, that statistic is skewed by population concentrations and average income. Most people who choose a Medicare Advantage plan do so because they are on a limited fixed income. Florida is one of those states with a higher than average Medicare Advantage enrollment. Still, four out of ten Floridians choose Medicare Advantage over Original Medicare. The reasons for this are simple.
- Medicare Advantage plans do not offer as much insurance coverage as Original Medicare plus a Supplement. So those that can afford a Supplement get one because of the better insurance coverage and
- Medicare Supplement plans are standardized to offer the exact same coverage from state to
state and insurance company to insurance company. You are not limited to a network, you can go to any doctor. You are not required to have a Primary Care Physician that has to approve you seeing a specialist and your maximum financial risk can be limited to zero or just a few $100s. Medicare Advantage plans are not standardized. They are only regulated to provide a minimum coverage that approximated Medicare Part A & B without a supplement. You will be limited to a network and you will have a higher co-pays and deductibles with a higher total financial risk (your maximum out-of-pocket expense) when you get ill and need medical services. Still, when you compare the quality of Medicare Advantage plans across the country, Florida has some of the best available.
- The third point that makes Florida unique is that the pricing structure of Medicare Supplements is very different from any other state. It is almost as if Florida Medicare Supplement prices defy the laws of economics. In short, the plans that are priced best is Florida are Medigap Plan F, Medigap Plan N and the Medigap Plan F-HD or High Deductible. Everyone new to Medicare in Florida should understand and price at least those three plans.