Page 1 - Cover Letter & Evaluation for Jane Stewart

October 26, 2018

Ms. Jane Stewart
72 Via del Cielo
Rancho Palos Verdes, CA 90275

Dear Ms. Stewart:

Your Medicare evaluation is enclosed. Please check the information on the client data sheet on
page 1 to make sure it is correct. Also, please verify that the attached list of your Rx drugs,
dosages, and monthly quantities shown on the first page of Appendix C1 is accurate.

Your Medigap coverage appears to be excellent, but your current prescription drug coverage is
overpriced for the three Rx drugs that you take. And if you decide to switch drug plans, you will
need to do so before Medicare’s fall open enrollment period ends December 7. Here’s a
summary of your Medigap coverage and your prescription drug coverage.

Your Medigap coverage

The premium for your High-Deductible Plan F Medigap policy of $73.91 a month (or about $887
a year) is very low and there’s no reason to change. While you might be able to save a few
dollars, it would likely not be worth the trouble of securing current quotes and switching
insurance companies.

In 2019 the deductible for your plan will be $2,300, and even if you were to spend the entire
deductible, your total costs for Medicare-covered medical services would be slightly less than
the estimated $3,200 annual premiums of the standard Plan F that has no deductible. In most
years, of course, you will not spend the deductible amount, and so will save money compared
to having the standard Plan F.

The premiums for High-Deductible Plan F and the standard Plan F are listed in Appendices B1
through B3. Appendix B1 shows the premiums and toll-free numbers for all companies licensed
to sell Medigap policies in California and it also shows the plans they sell (many companies do
not sell High-Deductible Plan F, for instance).

Appendices B2 and B3 are from CSG Actuarial, a consulting firm that provides quotes for
insurance agents. The CSG Actuarial premiums may in some cases be lower than you could get
because commissions are not included (I do not know which ones do not include commissions).