Page 1 - Cover Letter and Evaluation for Steve DIckhaus

November 25, 2019

Mr. Stephen M. Dickhaus
441 Vadnais Lake Drive
Vadnais Heights, MN 55127

Dear Mr. Dickhaus:

Your Medicare evaluation is attached. You might begin by checking the information on the
client data sheet on page 5 to make sure it is correct. After December 1, you can enroll in
Medicare Part A and Part B by calling Social Security at 800-772-1213. Within 2-3 weeks after
you call, you should receive your Medicare card in the mail. It will indicate that your Part A and
Part B coverage will begin on March 1, 2020.

You can also enroll in your supplemental coverage after December 1, but we recommend that
clients wait until approximately 4-6 weeks before their Part A and Part B coverage go into
effect. That way, if their prescription drugs change or if they start seeing a different doctor,
they can factor that into their plan choice. The costs shown in your evaluation are for the 2020
plan year, but your costs will of course be less.

In your questionnaire you indicated that your preference is to get a Medigap policy, and so it
might be helpful to understand how these policies coordinate with Medicare.

The basics of Medigap policies

Medigap policies are also known as Medicare supplemental plans. When people who have a
Medigap policy go to the doctor, the doctor sends the bill for their visits to Medicare, which in
most cases pays 80% of the cost. Then Medicare forwards the 20% balance to the Medigap
insurer, which pays what it owes, up to policy limits. If there is an outstanding balance after the
Medigap insurer has paid, then the doctor’s office bills patients for the remaining amount.

There are several benefits to this kind of coverage. First, you are covered when you go to any
provider who accepts Medicare, as 99% of doctors and public hospitals do. Second, Medicare
makes the coverage decisions – not an insurance company. And Medicare is much more lenient
in its coverage decisions than are insurance companies.

During the first six months that people have Part B, they have a guaranteed issue period to buy
a Medigap plan. During this six-month period, insurance companies cannot ask health questions
or charge higher premiums because of pre-existing conditions. After that six-month period has
passed, however, insurance companies can ask applicants questions about their health and