Page 3 - Cover Letter and Medicare Evaluation for Rod Morgan

Medigap insurer is required to pay. That’s different from an Advantage plan, where the
insurance company can in some cases decide whether a service will be covered.

The downside of Medigap policies is that they are expensive. People who acquire a
comprehensive Medigap plan like Plan G or Plan N at age 65 may spend more than $80,000 on
their Medigap premiums over a 25-year period, not including Part B premiums and drug costs.

Unlike most Medicare Advantage plans, Medigap policies do not cover routine dental and vision
care or hearing aids -- Medicare doesn’t currently cover these treatments, although it does
cover diseases of the eye (glaucoma, cataracts, etc.). In Colorado there may be a few
“innovative benefit” Medigap plans that offer limited dental/vision benefits, although before
relying on these you should verify with your dentist and optometrist that they will accept this
coverage.

The two Medigap plans compared in your evaluation – Plan G and Plan N -- include some
benefits for medical emergencies while traveling outside the United States. Here are summaries
of the two plans:

1) Medigap Plan G. This is the most comprehensive Medigap plan available to people who
turn 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 $1,600 or possibly less (about $135 a month). Appendix B2 is a list of
insurance companies’ Plan G premiums from CSG Actuarial.

2) Medigap Plan N. While this plan is slightly less comprehensive than Plan G, it 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 should be able to get Plan G for about $100 a month ($1,200
annually). Appendix B3 is a list of the Plan N premiums from CSG Actuarial.

The pricing of Medigap policies

If you decide to get a Medigap policy, it’s good to give some thought as to the company that
you will buy your policy from and to make a few calls to get current quotes. While it’s important
to go with a company that has relatively low premiums, you may also want to factor in a
company’s financial strength and size – since you may not be able to switch companies later
without disclosing pre-existing conditions.

One guideline is that larger companies tend to have slightly lower annual premium increases,
according to a government study a few years ago. CSG Actuarial’s premium comparisons in
Appendix B2 and Appendix B3 may be helpful in a couple of ways. First, they can serve as a
starting point to identify the companies that have lower premiums; second, they show the

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