Page 3 - Cover Letter and Evaluation for Melanie

1) Medigap Plan F. This is the most comprehensive Medigap plan, covering all of
Medicare’s gaps. With Plan F, you will have no cost-sharing for Medicare-covered
services. In Collin County, you can likely purchase a Plan F policy for $1,900 a year or
perhaps less. Beginning in 2020, Plan F and Plan C (see below) will no longer be sold,
although policyholders who already have either of these plans at that time may keep it.

2) Medigap Plan C. This plan and Plan G (below) are both similar to Plan F. The only
difference between Plan C and Plan F is that Plan C does not cover the excess charges
from doctors who do not accept Medicare’s approved rates. Some physicians will accept
Medicare patients but will not agree to Medicare’s approved rate schedule. In those
cases, the physicians may add an “excess charge” that can be as much as 15% more than
Medicare’s approved rates.

Usually these excess charges are small – a few dollars, for instance – although in the
case of an expensive treatment they can be more substantial. As shown in Appendix A,
all your doctors except possibly Dr. Rogers accept Medicare-approved rates. That means
that when you see them you won’t need to worry about excess charges. It’s likely that
Dr. Rogers accepts Medicare’s approved rates as well, but neither she nor her medical
group (Family Healthcare Services) is listed on the Medicare web site. It’s not that
unusual, however, for doctors not to be listed. If you like, you can call Dr. Rogers’ office
to verify whether she accepts Medicare’s approved rates (or Medicare assignment).

Because its benefits are almost identical to those of Plan F, Plan C’s premiums are
similar – usually $3-$5 a month lower than those of Plan F. And as noted, this plan and
Plan F will no longer be sold beginning in 2020.

3) Medigap Plan G. This plan’s benefits are also similar to those of Plan F except that Plan
G does not cover the Part B deductible ($183 this year). People often save money by
choosing Plan G instead of Plan F because they save more in premiums than the amount
of the Part B deductible. Estimated annual premiums are $1,700.

4) Medigap Plan N. This is the least comprehensive of the four plans in your evaluation,
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 often will likely save $200-$300 a year in this
plan compared to the higher-premium Plan F. Estimated annual premiums are $1,450.

The pricing of Medigap policies

It’s good to give some thought as to the company that you will buy your policy from and to
make a few calls to get current quotes. And while it’s important to choose a company that has
relatively low premiums, you may also want to factor in the company’s financial strength and
size. As a rule, larger companies have slightly lower annual premium increases, according to a
government study a few years ago.