Page 2 - Cover Letter & Evaluation for Carola Bundy

It might be helpful to review some features that all Medigap policies share (you may already be
aware of these). These policies can be purchased during the first six months you have Part A
and Part B without your having to answer health-related questions. But after that six-month
period has past, if you want to acquire a Medigap policy, you will likely have to answer
questions about your health before receiving a 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. As
mentioned, there are no networks, and you will be covered when you see any provider who
accepts Medicare (as some 98% 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.

Medigap policies do not cover routine dental and vision care or hearing aids. Plans F, G, and N
in your evaluation do 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 F. This is the most comprehensive Medigap plan, covering all of
Medicare’s gaps. If you get Plan F, you will have no cost-sharing for Medicare-covered
services. In San Luis Obispo County, you can likely purchase a Plan F policy for $1,750 a
year or less. Beginning in 2020, Plan F will no longer be sold, although policyholders who
already have this plan at that time may keep it.

2) Medigap Plan G. This plan’s benefits are identical to those of Plan F except that it does
not cover the Part B deductible, which in 2019 is $185. In some cases, people can save
money by choosing Plan G instead of Plan F because the premium savings are greater
than the amount of the Part B deductible. I’ve estimated that you can get Plan G for
$1,550 a year or less, which is $200 less than Plan F.

3) Medigap Plan N. This is a slightly less comprehensive plan than Plans F and 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 $200-$300 a year in this
plan compared to choosing the higher-premium Plan F. Estimated annual premiums are
$1,400 a year.

4) Medicare Plan L. This is the least comprehensive of the four Medigap plans compared in
your evaluation. One nice feature of Plan L is its low $2,780 out-of-pocket limit – it is the
only Medigap plan in your evaluation that has an OOP limit. But the limit does not
include premiums and applies 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

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