Page 1 - Lowest-cost Rx drug plan for 2019

October 25, 2018

Ms. Melanie Vincz
917 Medinah Drive
Fairview, TX 75069

Melanie –

If you still plan to retire at the end of this year, if you haven’t already done so you will need to
enroll in Part A and Part B effective January 1, 2019. You can do that by calling Social Security at
800-772-1213 (or you can enroll online at ssa.gov or can schedule an appointment at your
nearest Social Security office). Within two or three weeks after you enroll, you should receive
your new Medicare card indicating that you will have Part A and Part B effective January 1. I’m
not sure if you already have Part A – on your original questionnaire didn’t indicate either way.

To get a Medigap policy, you should call two or three insurance companies and get their current
quotes. The evaluation I sent you earlier this year includes premium comparisons and phone
numbers of the insurance companies that sell Medigap policies in Texas. Once you decide which
company you’re going to get your policy from, you can sign up and let the company know that
you want your coverage to begin January 1.

During the first 6 months that you have Part A and Part B, insurance companies that sell
Medigap policies cannot ask you questions about your health or charge you higher premiums
because of pre-existing conditions. But after that initial six-month period is past, they can
charge higher premiums or deny coverage to applicants with pre-existing conditions.

Because Medigap policies do not include prescription drug coverage, you will also need to
enroll in a Part D prescription drug plan (also called stand-alone drug plans). As shown in
Appendix A1, the lowest-cost plan for your drugs in 2019 is the Express Scripts Medicare Saver
Prescription Drug Plan. Appendix B2 shows this plan’s benefit details

You can enroll in this plan by calling (866) 477-5704. Be sure to specify the exact name of the
plan and mention that it has a $24 monthly premium in 2019. There are several Express Scripts
plans and it’s important that you enroll in the correct one. This plan’s estimated annual costs
for your Rx drugs in 2019 are $1,640 – that includes premiums, deductible and co-pays. Mail-
order refills are $65 less expensive for the year.

Sincerely,

David Armes, CFP®