The Florida state requires the seniors eligible for Medicare to pay approx around 60%+ for availing Medicare Advantage plans. According to the experts, Florida rates
are considered to be among the country’s highest. The active and vibrant senior community, lower housing costs as well as taxes in the state, the easy lifestyle and temperate climate are few of the reasons majority of the Americans dream retire here. Hence, the number of senior citizens of ages 65+ in this state is much higher of around 17.7% of the state’s total population. The current population here is over 3,339,000 and Medicare Beneficiaries in the state number approximately 3,300,000.
Reason for less number of Medicare Advantage plans in Florida State
With increasing medical expenses and the need to avail medical facilities with age, a good number of aging people are likely to create huge impact upon the cost of conducting business for nay insurance company, which promotes Medicare Advantage plans. Higher claims cost has only led some insurance companies to stop offering plans in Florida State, thus limiting seniors choices. It only means more expensive premiums.
About issue age & attained age policies
The other factor that is said to affect advantage rates in this state is due to introduction of some insurance regulations here. Although the regulation is good for consumers, it causes high insurance rates and more premiums. The state laws determine that all advantage plans are to be sold in the form of attained age vs. issue age. The premium with issue age pricing tends to depend upon the individual’s age when the policy is purchased. On the other hand, attained age plans tend to increase as the person ages. Such increases are quite significant. But there is no premium increase noticed in issue age policies based on age. Rather they are found in conjunction along with Medicare deductible increase and cost sharing, thus having less impact upon the plan cost. It results in only predictable costs in the near future.
The insurance companies desiring to market advantage plans in the state of Florida are required by the state to come up with plans for those qualifying for Medicare under age 65. They are the beneficiaries who are on the SS disability for about 24 months. It also provides them with the capability to stay protected against increased care quality and medical costs and also creates higher insured cost group and higher risk.
The above are just few of the several factors which contribute towards higher cost in Medicare Advantage plans in the state of Florida.