Page 3 - Cover Letter and Evaluation for Raquelle Myers

deductible ($198 in 2020). That means that once you have satisfied the Part B
deductible, you will not have any other co-payments for Medicare-covered services.
Your estimated premiums for this plan will be about $2,200 a year.

2) Medigap Plan N. This is a slightly less comprehensive plan than Plan G and it has some
small gaps (pages 6-7 show where these gaps are). People in relatively good health who
do not go to their doctors frequently will likely save money in this plan compared to
choosing the higher-premium Plan G. Estimated annual premiums are $1,750 a year.

3) Medigap Plan L. This is an even less comprehensive Medigap plan. One of its good
features is its low $2,940 out-of-pocket limit – it is one of only two Medigap plans that
have out-of-pocket limits. But those limits do not include premiums and apply only to
the services the plan covers. As an example, the Part B deductible is not covered by this
plan and so any money you spend on the deductible will not apply to the out-of-pocket
limit. Annual premiums for Plan L are about $1,700.

The pricing of Medigap policies

It’s good to give some thought as to the company that you will buy your policy from and to
make a few calls to get current quotes. While it’s important to choose a company that has
relatively low premiums, you may also want to factor in a company’s financial strength and size.
As a rule, larger companies have slightly lower annual premium increases, according to a
government study a few years ago.

The premium comparisons in Appendix B1 are from the Washington State Office of the
Insurance and appear to be current. These comparisons include insurance companies’ toll-free
telephone numbers. Appendices B2 through B4 also list the premiums for each plan in your
evaluation. These premiums are from CSG Actuarial, a firm that provides quotes for insurance
agents. Some of the premiums here may be lower than you can get because the commissions
are not included (I don’t know which ones these are).

The CSG Actuarial premiums may be helpful in a couple of ways. The premiums are sorted from
lowest to highest, which makes it easier to identify the lowest-premium companies. Also, the
CSG Actuarial comparisons in most cases list the insurers’ financial ratings as well as the
number of years they have been in the market.

Durable Medical Equipment

As explained in my earlier memo, Medicare’s Part B includes coverage for durable medical
equipment (DME) such the bi-pap device and certain external insulin pumps, as well as supplies
for this equipment. In some parts of the country, Medicare designates DME suppliers that you
will need to get this equipment from, while in other areas you can choose whom to buy your
equipment from. Your physicians and/or pharmacy should know the requirements in your area.

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