Page 2 - Cover letter and evaluation for Jay Newman

– Plans F, G, N, and L – which the evaluation focuses on. Even though you are likely going to
want Plan F, it might help to see comparisons of other Medigap plans’ costs and benefits.

Perhaps the most desirable attribute of Medigap policies is the flexibility they offer. You do not
need referrals to see specialists and will be covered when you see any provider who accepts
Medicare (as more than 98% of doctors and public hospitals do). Because Medigap policies are
nationally standardized, your coverage is the same in every state.

There are some benefits that Medigap policies do not cover – among these are prescription
drugs, routine dental and vision care and hearing aids. And although Medicare does not provide
coverage when you are outside the United States, In your evaluation, Medigap Plans F, G, and N
include some benefits for medical emergencies while traveling in other countries. You can see a
description of this coverage on pages 6-7 of the evaluation.

Also, some Medigap plans do not cover what are known as “excess charges” from providers
who do not accept Medicare’s approved rates as payment in full. As an example, a doctor may
accept Medicare patients but not agree to accept Medicare’s approved rates. In that case, the
doctor can charge up to 15% more than the approved rates. Plans F and G in your evaluation
cover these excess charges, but Plans N and L do not. Typically these excess charges are only a
few dollars, but in isolated cases they can be substantial.

According to the Medicare web site, Dr. Whitlow may or may not accept Medicare’s approved
rates, but your other three physicians do accept them. If you get Plan F or Plan G, it doesn’t
make any difference whether a doctor accepts Medicare’s approved rates – so long as he or she
accepts Medicare.

Here are brief descriptions of the four plans compared on pages 2-3 of the evaluation:

1) Medigap Plan F. This is the most comprehensive any Medigap plan, covering all of
Medicare’s gaps. In this plan, your only cost for Medicare-covered services are your
premiums (Part B premiums and Medigap premiums). Beginning in 2020, Plan F (and
Plan C) will no longer be sold, although people who already own this plan at that time
may keep it. You can likely purchase a Plan F policy for $300 a month or perhaps less. In
the evaluation I’ve assumed you’ll get a policy for about $3,500 a year.

2) Medigap Plan G. This plan’s benefits are identical to Plan F’s except that Plan G does not
cover the Part B deductible ($183 in 2018). In many instances, people will save money
by choosing Plan G instead of Plan F because their premium savings are greater than the
Part B deductible. Beginning in 2020 when Plans F and C will no longer be sold, Plan G
will be the most comprehensive Medigap plan. Your annual premiums in this plan will
likely be about $3,300.

3) Medigap Plan N. This is slightly less comprehensive than Plans F and G, and it has some
small gaps. In this plan, people in relatively good health who don’t go to their doctors

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