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Medicare Supplement policies are also known as Medigap Insurance. They are designed to help Medicare recipients pay for healthcare expenses not covered through regular Medicare or Medicare Advantage plans. Although each Medigap policy must meet the same Florida State and Federal guidelines, insurance companies set their premium pricing differently. These differences will be responsible for the amount you pay now as well as in the future. There are three ways that policies are priced, or rated. The first type of pricing is Community Rated, also known as ýno age rated. The same premium is paid by everyone who has a specific policy, regardless of age.
This means that, even though premiums may go up due to various economic factors, they will not go up based on age. Companies that use Age Related Pricing sell their products based on the age of the person at the time the Medigap Insurance is purchased. If the insurer that you are purchasing your plan from uses this type of pricing, it is better to purchase it when you first qualify for Medicare. Premiums will not go up because of your age. Attained age rated pricing bases the premiums on your current age. As you ýattainý more age, the more the price goes up.
This results in low premiums when you are younger and increase periodically throughout the years. When comparing pricing, make sure to compare the same policy and pricing types to ensure you are getting the best rates. There are other factors that affect Medigap Insurance pricing as well. Many companies offer a series of discounts, including better rates for non-smokers, those who are married and people who choose to pay electronically rather than by cash or check. If you purchase a Medicare Select policy your premium may also be less. There are some plans that offer a ýhigh deductibleý option.
Although this means that you will need to pay more out of pocket before the Medigap Insurance benefits are available, the monthly premiums will be lower. For this type of plan, you would also need to pay a separate deductible for prescription medications if purchased before December 31, 2005. There are many insurance companies in Florida that can offer insurance plans at affordable rates. There are also some Medicare HMO's located in various counties that you may be able to take advantage of. It is important to understand what coverage you need and balance it with a premium you can afford. |
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