Page 4 - Cover Letter and Evaluation for Diann Weade

For future reference, the Medicare counseling agency for Indiana uses the CSG Actuarial
premiums, and you can also go to this site to get current quotes based on your age, gender,
smoking status, and zip code:

https://tools.csgactuarial.com/medicare-supplement

Discounts

Insurance companies that sell Medigap policies offer discounts of various kinds. As an example,
some companies have discounts for automatic debit payments of monthly premiums or for
paying for a year’s premiums in advance. The largest discounts are typically available when
both spouses buy their policies from the same company. While not all companies offer these
“household discounts,” the ones that do often have substantially reduced premiums.

In addition, the UnitedHealthcare/AARP Medigap policies have an early enrollment discount
that in your case is 24% below AARP’s standard rate. The discount is calculated by multiplying
3% by the number of years that you are younger than 75. In your case, the discount equals 8
years x 3%, or 24%, and that discount will be reduced by 3% each year until you turn 75.

If you acquire an AARP policy, you may have two increases a year – one a 3% increase
associated with the reduced discount (until you turn 75) and the other an increase for health
care inflation. AARP policies can be good choices if they are attractively priced, but you should
be aware that because of the reduced discount each year until you are 75, your premiums may
rise more quickly than with many other insurers. After you turn 75, the AARP premiums will
likely increase more slowly.

In addition to discounts, some insurers provide extra benefits such as membership in Silver
Sneakers, which give you access to more than 12,000 gyms and health clubs nationally.

Medicare Advantage plans

As you are aware, Advantage plans are managed-care plans – primarily HMO’s and PPO’s. They
are different from Medigap policies because they are not considered supplemental coverage.
Medicare pays the plans a monthly amount -- $900 a month, say – for each enrollee. These
amounts are not the same for all enrollees since they are adjusted for age and health status.
Because the Advantage plan gets $900 a month, for example, for as long as you are enrolled, it
can offer attractive benefit packages that include zero premiums for health and Rx drug
coverage, etc.

When you enroll in an Advantage plan, it replaces Medicare for as long as you are enrolled in
the plan (Medicare assigns your benefits to the plan). Advantage plans must follow Medicare’s
coverage rules and provide the same overall benefits as traditional Medicare, but they have

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