Page 2 - Cover Letter and Evaluation for Melanie

Medigap policies are your best options

For your supplemental coverage, the best choice is to get a Medigap policy along with a Part D
stand-alone plan. There are several reasons that a Medigap policy is better for you than an
Advantage plan. First, some of your physicians are in Texas and some in California. The best
supplemental coverage to have when you see doctors in different states is a Medigap policy.
If you were to enroll in an Advantage plan, at least three of your doctors would not be in the
plan’s network, and you would pay much higher costs when you see them.

Second, you indicated that you plan to travel abroad during retirement, and several Medigap
plans, including the ones in your evaluation, include some coverage for medical emergencies
when you’re visiting other countries. Advantage plans, on the other hand, do not include
coverage in other countries. For additional information on coverage when you travel to other
countries, see Appendix D1.

Still another reason is that you may have knee replacement surgery at some future point, and
Medigap policies do not have the restrictions and prior approval requirements for surgeries,
whereas most Advantage plans do have restrictions. A final reason to get a Medigap policy is
that you won’t have to answer health-related questions if you get the policy during the first six
months that you have both Part A and Part B. You will also typically get the lowest premiums
then. But after that six-month period is past, you will have to answer health-related questions
before you receive a quote (people with serious illnesses may not be able to get a policy).

Also, you will likely have to answer health-related questions if you initially choose a less
comprehensive Medigap plan and later want to upgrade to a more comprehensive plan. The
UnitedHealthcare policies endorsed by AARP will allow you to switch plans and upgrade
without going through medical underwriting, but if you’re interested, you should verify this.

As shown on pages 6-7 of the evaluation, there are 10 different Medigap plans. Your evaluation
compares four of them -- Plans F, C, G, and N. These four plans, along with all other Medigap
plans, have several things in common, and it might help to review these briefly.

Perhaps Medigap policies’ best feature is that they do not have networks. That means you will
be covered when you see any provider who accepts Medicare -- as some 98% of doctors and
public hospitals do. Therefore, you can go to virtually any doctor, hospital or clinic in the U. S.
and have solid coverage without worrying about out-of-network costs.

Medigap policies do not include prescription drug coverage, and so people who get Medigap
policies must also enroll in Part D stand-alone plans, as discussed below. Neither do Medigap
policies cover routine dental and vision care or hearing aids (nor does Medicare cover these).

Here are summaries of the four plans that are compared in your evaluation.