Page 3 - Cover Letter and Evaluation for Diann Weade

1) Medigap Plan G. This is a comprehensive Medigap plan, covering all of Medicare’s gaps
except for the Part B deductible ($185 in 2019). That means you will not have any cost-
sharing for Medicare-covered services after you’ve paid your Part B deductible each
year. Beginning in 2020, Plan G will be the most comprehensive Medigap plan, replacing
Plans F and C, which will no longer be sold. In Allen County you can likely purchase a
Plan G policy for $1,300 a year or less, although your premiums could be increased
because of pre-existing conditions, as explained below.

2) Medigap Plan N. This is slightly less comprehensive than Plan G, but it still has very few
gaps. In addition to the $185 Part B deductible, you will have up to $20 co-payments for
doctor’s office visits and a $50 co-payment for an Emergency Room visit. Estimated
annual premiums in your area are $1,150.

The pricing of Medigap policies

During the first six months someone is enrolled in Part A and Part B, he or she has a guaranteed
right to get a Medigap policy without answering questions about health or pre-existing
conditions, although premiums will be adjusted for age and gender. Because you are past that
six-month guaranteed issue period, you will have to answer health-related questions before
you are given a current quote for a Medigap policy.

Usually these questions are short, e.g., has a doctor recently recommended that you undergo
surgery, have you been hospitalized in the last six months, do you have any serious pre-existing
conditions, etc. Then the insurer will usually wait a few days before giving you a firm quote so
that the underwriting department can review your application. In the vast majority of cases,
people in their 70s and even 80s are able to buy their first Medigap policy without substantial
premium adjustments, but occasionally they will be charged higher premiums or denied
coverage.

If you decide to get a Medigap policy, 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. While it’s important
to go with a company that has relatively low premiums, you may also want to factor in a
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.

The premium comparisons in Appendices B1 and B2 are from CSG Actuarial. Some premiums in
the CSG Actuarial comparisons may be lower than you can get because the commissions may
not be included (unfortunately, there’s no way to filter these out or for me to know which ones
they are). Most of these premiums, though, should be close to current quotes.

CSG Actuarial’s premiums can be helpful in a couple of ways. First, they can serve as a starting
point to identify the companies that have lower premiums; second, these quotes also show the
insurance companies’ financial ratings by A.M Best and (for the larger companies) Standard &
Poor. They do not show the companies’ phone numbers, which can be found in Appendix B3.

3