Page 2 - Cover Letter & Evaluation for Jane Stewart

The CSG Actuarial quotes rank the companies in order of their premiums, from lowest to
highest, and they also show the companies’ financial ratings.

Beginning in 2020, Plans F, High-Deductible F, and C will no longer be sold, although current
policyholders will be able to keep their plans. Sometimes when a plan is discontinued its
premiums will start to rise more quickly because of the shrinking policyholder base. That’s not
an issue with standard Plan F because there are millions of people who have this plan, but it
could be with the high-deductible version of Plan F. Also, as you know, Anthem Blue Cross no
longer sells the High-Deductible Plan F, and so its policyholder base may already be small
(although it hasn’t impacted your premiums).

If in the future your premiums do begin to spike, you may be able to use California’s Birthday
Rule to switch to a lower-premium insurer. A summary of this law is attached. It allows current
Medigap policyholders to change insurance companies without answering questions about
their health or disclosing pre-existing conditions, although their premiums will be adjusted for
age and gender. They can do so each year during the 30-day period following their birthdays.

People cannot use the Birthday Rule to upgrade to more comprehensive coverage, but they can
use it to downgrade or move laterally. Because High Deductible Plan F will no longer be sold
beginning in 2020, you would have a guaranteed right only to switch to High Deductible Plan G,
which will first become available in 2020. Also, you may be able to upgrade even if you are
asked health questions. But for now, your medical coverage, especially its cost, is very good.

Your prescription drug coverage

Your current Part D stand-alone plan – the AARP Medicare Rx Preferred plan – is not a good
match for the drugs that you take. One of your drugs (amlodipine/valsartan) is not on its
formulary and its high premiums more than cancel out its zero deductible. You can save more
than $2,700 next year if you switch to the Wellcare Value Script plan.

Appendix C1 shows the Rx drugs, dosages, and monthly quantities that were used by the
Medicare Plan Finder to identify the lowest-cost plans for 2019. The following pages in
Appendix C1 rank the plans in order of their annual costs for the three Rx drugs you take. These
costs are estimated total costs – premiums, deductibles, and co-payments. The costs for retail
prescriptions assume you will get them filled at a Ralphs Pharmacy.

Appendix C2 has a side-by-side comparison of your current plan and the Wellcare Value Script
plan, while Appendices C3 and C4 explain each plan’s benefits in more details.

If you want to change plans, you will have to do so by December 7, and preferably before that.
Here are the steps to take if you want to switch plans.

 Call the Wellcare Value Script enrollment number at (888) 293-5151 and let the
representative know you want to enroll in this plan effective January 1, 2019. Be

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