Page 4 - Evaluation for Jeanne Huybrechts

Health Part D Value Plus plan. Its estimated annual costs are $1,160 if you continue to get retail
refills at CVS. In the First Health Part D Value Plus plan you will see small savings if you go to
Walgreens instead of CVS. Also, in 2017 you could have saved roughly $60 by using mail-order
refills.

If you decide to enroll in the Aetna Medicare Choice PPO plan, your Part D coverage is included
in the plan’s benefits. This plan would have cost about $360 less for your prescription drugs in
2017 than the First Health Part D Value Plus plan.

Analysis

Since there do not appear to be any Advantage plans that match your needs, it seems that a
Medigap policy is your best option. You will have less out-of-pocket risk with a Medigap policy,
although your premiums will be higher. People who enroll in Advantage plans understand that
they are accepting somewhat more risk in exchange for lower fixed costs. As an example, the
three Medigap plans compared in your evaluation have very little risk but are relatively
expensive. The Advantage plan, on the other hand, has lower fixed costs (including the $750
health plan deductible) but you accept more risk in this plan with its high out-of-pocket limit.

The other consideration is that if you choose an Advantage plan and years from now want to
switch to a Medigap policy, you will probably have to answer questions about your health and
may be charged higher premiums if you have a serious pre-existing conditon (or in some cases
denied coverage). Usually it is not difficult to wait until later to get a Medigap policy, but there
is some risk involved in waiting. .

Jeanne, after you’ve reviewed the evaluation please let me know if you have questions. Also,
there are a couple of things to keep in mind as you make the transition to Medicare for your
primary coverage. On your initial visits to your doctors after October 1, show the office staff
your enrollment cards for Medicare and the Medigap policy/Part D plan (or the Advantage
plan). That may help avoid any billing confusion. And on your first visit to the pharmacy after
October 1, show them the enrollment card for your Part D coverage.

Also, you’re entitled to a free “Welcome to Medicare” physical (see page 11 of the evaluation),
but you’ll probably have to request it from your primary care doctor.

Sincerely,

David Armes, CFP®
Attachments
WDA:91117

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