Page 3 - Cover Letter and Evaluation for Steve Decker

Connecticut’s Medigap premiums are among the highest in the country, mainly because people
can wait until later retirement before they switch from an Advantage plan to a Medigap policy +
stand-alone drug plan during annual open enrollment.

In most other states, if people do not get a Medigap policy during the first six months they have
Part B, they will have to go through medical underwriting if they later want to get a Medigap
policy. That enables insurance companies to screen out unhealthy applicants who are more
than six months past their Part B enrollment date – which is something that insurers cannot do
in Connecticut. And for older retirees, the community rating requirement may make Medigap
premiums more comparable to those in most other states.

Below are summaries of the two Medigap plans compared in your evaluation. The benefit
designs of the eight Medigap plans that are available to you are shown on pages 6-7 of the
evaluation.

1) Medigap Plan G. This is a comprehensive plan that covers all the gaps in Medicare
except for the Part B deductible, which this year is $198. In this plan, after you’ve
satisfied the Part B deductible you will not have any co-payments or other cost-sharing
for Medicare-covered services. Plan G is the most comprehensive Medigap plan that’s
available to people who turn 65 this year or later (those who turned 65 before this year
can get Plan C or Plan F, both of which cover the Part B deductible).

Medigap premiums vary widely, as you can see in Appendix B2. For Plan G, you should
be able to get a policy for $250 a month or less (about $3,000 a year). Because there is a
wide range of premiums, it’s a good idea to get at least three current quotes. And ask if
the insurer includes any incidental benefits with its policies – health club memberships,
limited dental/vision benefits, etc.

2) Medigap Plan N. This plan is less comprehensive than Plan G but is still solid coverage.
Its gaps include the $198 Part B deductible, co-pays of up to $20 for doctor’s office
visits, and a $50 co-pay for emergency room visits. Its annual premiums are roughly 25%
lower than Plan G’s, and if you do not go to the doctor frequently you would probably
save money in this plan.

Pricing and Discounts

The Connecticut Insurance Department updates Medigap premiums monthly, and so the
premiums in Appendix B2 should be accurate (although it’s possible that a few insurers have
raised premiums in the last month or so). Phone numbers for the insurance companies that sell
Medigap policies can be found in Appendix B3.

As an added note, insurance companies that sell Medigap policies may offer discounts of
various kinds. Some companies have small discounts for automatic debit payments of monthly
premiums or for paying a year’s premiums in advance. The largest discounts are typically

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