Page 1 - Memo to Michael Boucher
P. 1

March 31, 2021


               Mr. Michael Boucher
               1054 Cheshire Lane
               Houston, TX 77018

               Dear Michael:

               As we discussed, you will need the following two types of coverage to supplement your Part A
               and Part B coverage:

                       1)  Medigap Plan G: This is the most comprehensive Medigap plan available to
                          someone your age, and it covers you for Medicare-covered services anywhere in the
                          United States with any medical provider who accepts Medicare.  After you’ve paid
                          the annual Part B deductible of $203, all your Medicare costs are covered.

                          Appendix A1 ranks the companies that sell Medigap policies in Texas by their
                          premiums. This ranking is from CSG Actuarial, a firm that provides quotes for
                          insurance agents. While these premiums should be current, it’s possible that a few
                          of them do not include agents’ commissions (there’s no way for me to know which
                          ones these are).

                          Appendix A2 lists the companies’ phone numbers.

                          It’s best to choose a company that has low premiums, a good financial rating, and a
                          recent history of low annual increases in their premiums (for most companies, all of
                          these elements are shown in Appendix A1).

                          You might also consider whether a company offers a household discount if both
                          spouses get a policy. You’d mentioned that your wife will start Medicare this fall (as
                          a side note, because her birthday is on the first day of the month, her Medicare
                          eligibility will begin on the first day of the prior month). She can get a policy effective
                          Sept. 1. Not all insurers offer household discounts, but they are another item you
                          may want to consider when you choose an insurance company.

                          During the first six months you have Part B, you have a Medigap open enrollment
                          period. And during this period, you cannot be asked questions about your health or
                          pre-existing conditions. In addition, during this six-month period you can switch your
                          policy to another company if you wish. But after this six-month period is past,
                          applicants can be asked questions about their health and may be charged higher
                          premiums or denied coverage.
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