Page 2 - Evaluation for Jeanne Huybrechts

approved rate. Plan F covers that additional charge, but Plans N and L do not. The Medicare
web site indicates that all three of your doctors accept assignment (see Attachment A1).

Medigap policies do not cover prescription drugs, so if you purchase a Medigap policy you will
also need to enroll in a Part D stand-alone drug plan. Neither do Medigap policies cover routine
dental and vision care or hearing aids. Plans F and N do have some benefits for medical
emergencies while traveling outside the United States, which Medicare does not cover.

Here are summaries of the three Medigap plans compared in the evaluation:

1) Medigap Plan F. This is the most comprehensive of all 10 Medigap plans, covering all of
Medicare’s gaps. That means that you will have no cost-sharing (co-payments or
deductible) for Medicare-covered services. And if you see a doctor who does not accept
Medicare assignment, any excess charges levied by that doctor will also be covered. You
can likely buy a Plan F policy that has annual premiums in the $2,200 range (I’ve
assumed $2,250 in the evaluation). In this plan, your entire cost for Medicare-covered
services is in the premiums (Medigap premium + Part B premium) and so is predictable.

2) Medicare Plan N. This is a slightly less comprehensive plan but it still has excellent
coverage. Its annual premiums are in the $1,775+ range. Even though you will have
some cost-sharing in this plan, you will likely come out $200 or $300 ahead unless you
use numerous medical services or undergo expensive treatments.

3) Medicare Plan L. This is the least comprehensive of the three Medigap plans compared
in the evaluation but it could also save you the most money, assuming you use relatively
few medical services and do not have any expensive treatments. Its annual premiums
are about $550 less than those of Plan F. It also has a low $2,560 out-of-pocket (or OOP)
limit – it is one of only two Medigap plans with an OOP limit. But the OOP limit does not
include premiums and it applies only to the services that the plan covers. As an example,
the $183 Part B deductible is not covered by this plan and so any money you spend
toward the deductible will not apply to the OOP limit.

The benefit designs of these three plans and the other plans are shown on pages 6-7 of the
evaluation.

Current Medigap premiums from CSG Actuarial and the California Department of Insurance are
listed in Attachments B1 and B2. The CSG list does not include contact phone numbers but the
California DOI list does.

Also, CSG Actuarial’s premium list indicates which companies offer household discounts when
both spouses buy a Medigap policy. Although not all insurers offer this discount, it is something
you may want to be aware of. Before purchasing a Medigap policy, we recommend that you
call at least three insurers.

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