Page 2 - Cover Letter and Cost Estimates for Ms. LaVerne Durham

20% balance. Probably the best feature of Medigap policies is the flexibility they offer -- you will
be covered when you see any provider who accepts Medicare (as 99% do).

The downside is that Medigap policies typically have much higher premiums (again, you pay
more to reduce risks). There are eight different Medigap plans available to people who turned
or will turn 65 after 2020. These plans’ benefit designs and their estimated annual premiums
for a 65-year-old woman in Montgomery County are shown on pages 6-7 of your comparisons.

Cost estimates under different coverage options

Pages 2-3 of the comparisons include side-by-side comparisons of two Advantage plans and two
Medigap policies + stand-alone drug plans. Also, Appendix B1 is a list of the 16 Advantage plans
that are available in Montgomery County, and a separate attachment lists insurers’ current
Medigap premiums in Maryland.

All your doctors accept Medicare, as indicated in Appendix A1. This means that if you get a
Medigap policy, you will be covered when you see them. But none of the Advantage plans listed
in Appendix B1 has more than three of your doctors listed in its network directory. And while
it’s possible that the plans’ network directories are not up to date, it’s unlikely that any
Advantage plan in your area has Dr. Willey in its network – that’s because she is in a different
state.

Medigap policies

The first two options in your estimates are Medigap policies – Plan G and Plan N. When you
turn 65 in seven years, you will have a six-month enrollment period during which you can get a
Medigap policy without having to answer health-related questions. But after that six-month
period guaranteed-issue period is past, in Maryland and most other states you will likely have
to answer questions about your health before you can get a Medigap policy.

The two Medigap plans compared in your evaluation are both comprehensive plans. Here are
summaries of the two plans:

1) Medigap Plan G. This is the most comprehensive Medigap plan available to people who
turned 65 in 2020 or later. It covers all of Medicare’s gaps except for the annual Part B
deductible, which is $203 this year. Once you’ve paid the Part B deductible, then, you
will not have any cost-sharing for Medicare-covered services. You can likely purchase a
Plan G policy for $1,700 or slightly less (about $140 a month). You can see each
company’s premiums in the separate attachment.

2) Medigap Plan N. This plan is slightly less comprehensive than Plan G but still provides
solid coverage. The only differences between this plan and Plan G are that you will have
co-payments of up to $20 for doctors’ office visits and $50 if you go to the emergency
room. You can get Plan N for about $115 a month (approximately $1,350 a year).

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