‘Novel’ Medicare HMO Plan Becoming More Popular With Florida Seniors

Florida-based Physicians Healthcare Plans' "novel" Medicare HMO, called CareFree, appears to be gaining in popularity, the Fort Lauderdale Sun-Sentinel reports. Under most Medicare HMOs, a portion of seniors' monthly Social Security payments are automatically deducted to pay for premiums under Medicare Part B, which covers doctor visits and other non-hospital services. However, CareFree, which begins Jan. 1, will cover the Part B premiums in full, giving seniors an extra $58.70 a month in Social Security payments. To offset the premium cost, the HMO offers only limited prescription drug coverage. For instance, beneficiaries in Miami-Dade County will receive $25 a month for generic drugs, and beneficiaries in Broward County will not receive any drug benefits. Physicians Healthcare President Mike Fernandez said the idea for the HMO came after he spoke to seniors and learned that many of them received little from Social Security. "I thought the average senior received $1,000 or more a month in Social Security, but much to my surprise, I found the average was only $500. We spoke to the [federal] government to see if we could absorb the Part B premium, and they said yes," he added. Healthier seniors, or those who require fewer medications, will "dominate" the new HMO's membership, Fernandez said, adding, "The response has been unbelievable, particularly in Broward County. It's a real gamble for us, but it just might make money. We're hoping, at least, to break even." The HMO received about 600 applications from Broward County seniors last week (Singer, Fort Lauderdale Sun-Sentinel, 11/12).