Page 1 - 2020 Cover Memo Jack and Linda

October 21, 2019

Dear Jack and Linda:

Shown below are the lowest-cost plans for the prescription drugs you take – this is according to
the Medicare web site’s Plan Finder program. The costs shown are the plans’ total estimated
costs in 2020 – including premiums, deductibles, and co-payments. CVS is a preferred pharmacy
in Linda’s lowest-cost plan but not in Jack’s lowest-cost plan.

If Jack wants to continue to use CVS, he should probably remain in his current plan in which CVS
is a preferred pharmacy. But he can save $98 next year by switching plans and getting his
prescriptions filled at a Ralphs Pharmacy. People can sometimes save several hundred dollars
by getting their prescriptions at a plan’s preferred pharmacies (although not all plans have
preferred pharmacies).

The costs below are based on a new Plan Finder program that Medicare rolled out last month,
and a couple of times last week I found errors in the calculations. If Linda wants to double-
check these costs, she might call her lowest-cost plan’s toll-free number below and see if they
will verify the costs – she will have to give them the names, dosages, and monthly frequencies
of the drugs she takes. Not sure if they will do that, though.
____________
Linda

The lowest-cost plan in 2020 for the Rx drugs that Linda takes is the Mutual of Omaha Rx Value
Plan. Because this is a new plan, it won’t have a quality rating for at least a year. The plan’s
details (Appendix A3) indicate that it may require a prior authorization for estradiol, but it’s
unlikely you will need your doctor to sign an authorization form. Also, you can reduce your
costs by almost 50% if you are willing to switch to mail-order refills (if you do that, you will need
new prescriptions from your physicians).

Current plan (beginning in January): Humana Premier Rx Plan $7,032
Lowest-cost plan*: Mutual of Omaha Rx Value Plan (CVS) $1,046
Estimated savings $5,986

*This plan’s estimated mail-order costs for 2020 are $538
__________
Jack

The lowest-cost plan in 2020 for the Rx drugs that Jack takes is the Wellcare Wellness Rx Plan,
which will be almost $100 less expensive next year than his current Wellness Medicare Rx
Select Plan. But that’s only if you get your prescriptions filled at a Ralphs Pharmacy. If you want