Page 3 - Cover Letter and Evaluation for Steve DIckhaus

for foreign travel emergencies, which is something that Medicare does not cover. In your
evaluation I estimated that this policy will cost you $1,800 a year, although it might cost slightly
more

The optional riders you can purchase with the Basic Plan are:

1) Part A deductible rider: in 2020 the Part A deductible is $1,408. This rider costs
roughly $425 a year.

2) The Part B deductible rider: because your initial eligibility date is later than 2019, you
cannot purchase this rider.

3) Part B Excess Rider. Providers who do not accept Medicare assignment can charge
up to 15% more for Part B services, but Minnesota is one of a handful of states that
prohibit these excess charges. So you don’t need this rider (unless you get care in
another state from doctors who do not accept assignment).

4) Prevention Rider. Medicare now covers 100% of all recommended preventive tests
and screenings, so this rider is of little value.

Minnesota’s Extended Basic Plan. As noted earlier, this is a very comprehensive plan with
superior benefits and that has a $1,000 out-of-pocket limit for the services that the plan covers.
In this plan it’s likely that your entire medical cost will be in the premiums and you will rarely
have a co-payment for medical care anywhere in the United States (although this plan does not
cover excess charges from out-of-state providers who do not accept assignment). It also adds
another 20 days of fully covered skilled nursing care to Medicare’s 100-day coverage. And it
covers 80% of routine medical costs in foreign countries, whereas the Basic Plan covers only
emergency care. This plan costs about $2,450 a year.

Medigap Plan N. This has become an increasingly popular Medigap plan in other states, and its
only gaps are up to $20 co-payments for doctors’ office visits and $50 for an emergency room
visit. But only two companies sell this plan in Minnesota, and it is overpriced because of the
lack of competition.

Finally, for younger retirees like you, Medigap policies are more expensive in Minnesota than in
other states because of Minnesota’s requirement that policies be community rated. That
means that a 65-year-old and a 90-year-old pay the same premiums, substantially increasing
costs for the 65-year-old to the benefit of the 90-year-old.

The Medicare Advantage plan in your evaluation

Minnesota has a number of highly rated Advantage plans, including the HealthPartners Journey
Pace PPO plan. In addition to its 4.5-star quality rating from Medicare, this plan has zero
premiums for health and Rx drug coverage and no health plan deductible. It also has low costs

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