Medigap Supplemental Insurance Plans

Medicare and Medigap are health insurance plans sponsored by the federal government.  Being regulated by the government means that there is not a lot of leeway.  Much of Medicare is standardized and is the same throughout the United States however, Florida is unique. The state of Florida is one of four states that allows the pricing of Medicare Supplemental Insurance Plans to be based on the age of enrollees.  “Issue Age” standard states that your Medicare Supplement rates cannot increase every year as you age.  The price can fluctuate because of normal inflation which on average is between three to four percent each year. Medicare enrollees also have the option to enroll in Medicare Advantage instead of Original Medicare and the addition of supplemental insurance.  Only 3 out of 10 Medicare participants choose Medicare Advantage.  Most participants choose this option especially when they are on a limited, fixed income.  The state of Florida has...

Medicare History In 1965 President Lyndon B. Johnson signed the Medicare Act.  This act promised to improve other health and medical assistance for Americans of all age. One of the primary goals of Medicare is to provide health insurance for seniors above 65 years old and to who have received Social Security Disability for a minimum of two years. Medicare provided around 70% of hospital bills – only 70% reimbursements of the expenses were made. It became necessary to fill the gap – a Medicare supplement plan was formed called “ Medigap .” The first Medicare supplemental policies in 1971 were introduced by Bankers life. Bankers Life signed contracts with a ton of insurance agents to market this big innovation. Because of the involvement of the policies, they gained a 47% share in the market. Many other companies in the industry – such as Mutual of Omaha, United American, and Colonial Life, got a smaller share of the market. This resulted in lower contracts for inde...