Medicare Supplement Plans In Florida

Did you know that Medicare Supplement insurance is a tool millions of Americans use to lower their out of pocket costs in Medicare? If you’re not sure how it works, or whether it is a fit for you, read this short guide to Medicare Supplement Plans in Florida.

Why Does Medicare Supplement Insurance Exist?

Medicare Supplement Insurance is designed to lower or eliminate the amount of money you spend out of pocket when you use your Medicare benefits. Since Medicare wasn’t designed to be free, there are a number of costs that you’re expected to pay along the way. The costs that you’ll encounter include:

• Part A deductible
• Part A co-insurance for lengthy hospital stays
• Part A co-insurance for hospice care
• Part A co-insurance for lengthy skilled nursing facility stays
• Part B deductible
• Part B co-insurance (20% of the cost for all Part B expenses, after you’ve met the Part B deductible)
• Part B excess charges (up to 15% beyond the standard 20% co-insurance, but only applicable in specific cases)
• Care received outside of the United States (Medicare generally doesn’t work outside the U.S.)

These expenses can add up during the course of a year, or over your lifetime. Unfortunately, Original Medicare doesn’t provide any sort of cap or limit on your out of pocket spending. If you need a lot of care for a serious illness, you can be exposed to very high costs, even if you’re only responsible for 20% of the cost of your care. This is what Medicare Supplement was designed to help you with: lower or eliminate your out of pocket costs.

How Do Medicare Supplement Plans Work?

Medicare Supplement, or Medigap plans as they’re often called, are issued by private insurance companies. Although Medigap plans are private insurance coverage, they are regulated at the state and federal level. Federally, Medicare Supplement plans are regulated by various laws and also by the Centers for Medicare and Medicaid Services (CMS). The individual states have the ability to regulate the premiums charged by insurance companies as well as whether or not people who qualify for Medicare before age 65 are allowed to get Medigap plans. For Florida Medicare Supplement plans, you can get coverage if you’re under 65 years old. However, the premiums tend to be significantly higher than for people aged 65 and over, so this may not be a viable option for everyone. Medicare Supplement plans have been standardized throughout most of the United States. 47 states, including Florida, plus Washington, DC, have standardized their Medigap plans. In these states, there are 11 Medigap plans available: Plans A, B, C, D, F, High Deductible F (HDF), G, High Deductible G (HDG), K, L, M, and N. Every one of these standardized plans offers a different coverage of the costs for Medicare. This gives you 11 options to find the right mix of coverage and cost to fit your needs. It also makes it very easy to shop for coverage, because the benefits provided by each standardized plan are the same in all 47 participating states.

What Are Some Popular Medicare Supplement Plans In Florida?

While there are a total of 11 Medigap plans available today, some are more popular than others. For one thing, federal legislation removed three options for some Medicare Beneficiaries: Plans C, F, and High Deductible Plan F are no longer available to people who become eligible for Medicare after December 31, 2019. Besides this, consumers tend to be attracted to the benefits provided by Plans G and N, so we’ll review the details of those two plans.

Medigap Plan G

Plan G is the most comprehensive plan available for people who become eligible for Medicare after December 31, 2019. Even for people who had Medicare coverage before that date, Plan G is extremely popular. Medigap Plan G covers all of your out of pocket Medicare costs except for the Part B Deductible. With Plan G, you’ll have to pay the Part B deductible out of pocket at the beginning of each year. Once you’ve met that (for 2022 it’s only $233), Plan G covers 100% of your Medicare costs for the rest of the year. Plan G also provides emergency coverage while you’re outside of the United States. Plan G, because of its comprehensiveness, is among the most expensive plans in terms of premium cost.

Medigap Plan N

Plan N is only slightly less comprehensive than Plan G, but noticeably less expensive in terms of premiums. With Plan N, these are the costs you’ll have to pay:

• Part B deductible
• $20 co-payments for office visits
• $50 co-payments for emergency room visits (waived if you’re admitted to the hospital)
• Part B excess charges (if applicable)

Excess charges are amounts imposed only by providers who don’t accept Medicare’s pricing. However, most providers do accept Medicare’s pricing, so it’s unusual to encounter excess charges. Plan N also covers you outside of the country.

Who Is Eligible For Florida Medicare Supplement Plans?

To be eligible for Florida Medicare Supplement plans, you have to be actively enrolled in Parts A and B of Original Medicare. As discussed earlier, you can get this coverage if you’re younger than 65, but you might find it to be expensive. People who get Medicare before age 65 may want to consider Medicare Advantage until they reach 65. Once they turn 65, they’ll have access to the standard Medigap pricing, which is much lower than for people under 65. Most people get to enter Medicare when they turn 65. When this is the case, you’ll have the opportunity to enroll in a Florida Medicare Supplement plan once you have your Medicare Number and know your Part A and B effective date. However, if you work past age 65 and delay your Part B benefits, don’t worry: you’ll have the chance to activate your Part B, and enroll in a Medigap plan, once your employer coverage ends.

FAQ About Medicare Supplement Plans In Florida