Page 2 - Cover Letter and Evaluation for Marilyn Shelton

premium quote. And people who have serious health issues may not be able to purchase a
Medigap policy or upgrade from a less comprehensive to a more comprehensive Medigap plan
after this initial six-month period.

Perhaps the most desirable attribute of Medigap policies is the flexibility they offer. There are
no networks, and you will be covered when you see any provider who accepts Medicare (as
some 99% of doctors and public hospitals do). That means you will have the ability to go to
virtually any doctor, hospital or clinic in the U. S. and be covered. All your and your husband’s
doctors accept Medicare-approved rates, as shown in Appendix A

Medigap policies do not cover routine dental and vision care or hearing aids. Plans G and N in
your evaluation include some benefits for medical emergencies while traveling outside the
United States (as shown on pages 6-7).

Here are summaries of the four Medigap plans compared in your evaluation. They are listed in
the order of their comprehensiveness.

1) Medigap Plan G. This plan will become the most comprehensive Medigap plan sold
beginning in 2020, covering all Medicare’s gaps except for the Part B deductible ($185 in
2019). That means that once you’ve satisfied the Part B deductible, you won’t have any
other co-payments for Medicare-covered services. Your estimated premiums for this
plan will be about $1,850 a year, although you may be able to get this plan for less.

2) Medigap Plan N. This is a slightly less comprehensive plan than Plan G and it has some
small gaps (pages 6-7 show where these gaps are). People in relatively good health who
don’t go to their doctors frequently will likely save money in this plan compared to
choosing the higher-premium Plan G. Estimated annual premiums are $300 a year less
than those of Plan G.

3) Medigap Plan L. This is an even less comprehensive Medigap plan. One of its good
features is its low $2,940 out-of-pocket limit – this plan and Plan K below are the only
two Medigap plans that have out-of-pocket limits. But those limits do not include
premiums and apply only to the services the plan covers. As an example, the Part B
deductible is not covered by this plan and so any money you spend on the deductible
will not apply to the out-of-pocket limit. Annual premiums for Plan L are about $1,450
less.

4) Medigap Plan K. This is the least comprehensive of the plans in your evaluation and has
the lowest premiums, estimated here to be about $1,000 a year. This plan’s out-of-
pocket limit is $5,880. It’s unlikely that most people ever reach that limit, though. That’s
because Medicare supplement plans are secondary coverage, paying after Medicare has
paid.

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