Page 2 - Cover Letter and Evaluation for Frank Levy

Your questionnaire also indicated that you have begun receiving Social Security benefits. When
people start receiving Social Security payments, the government automatically enrolls them in
Medicare Part A (and it backdates their Part A enrollment by six months if they are six months
or more past their full retirement age of 66).

If you have been contributing to a Health Savings Account while also being enrolled in Part A,
you might face a tax penalty. This may not be an issue, particularly if you haven’t recently
contributed to an HSA, but I thought I’d mention it. Attached to this letter is an explanation
from AARP of how this confusing rule works.

Your evaluation compares four options – two Medigap policies (Plan F and Plan N) and two
Medicare Advantage PPO plans. And if you decide to get a Medigap policy, you will also need to
enroll in a Part D stand-alone plan. In most cases the costs shown in your evaluation are for the
2018 plan year, even though you will be enrolled for only 10 months this year.

Medigap policies

Guaranteed issue rules

Medigap policies can be purchased during the first six months you have Part A and Part B
without your having answering health-related questions. After that six-month period
guaranteed-issue period is past, however, if you do not already have a Medigap policy you will
likely have to answer questions about your health before you can get a policy.

When your wife contacted me to inquire about our services, she mentioned that there’s a
possibility you will be moving to another area. Medicare’s rule, which is attached, is that if you
are enrolled in an Advantage plan and you move away from that plan’s service area, you will
have a guaranteed right to buy a Medigap policy without answering health-related questions,
although in Texas your premiums may be adjusted for age and gender.

But if you are enrolled in an Advantage plan and decide not to move, you will be medically
underwritten by the insurance company if you apply to purchase a Medigap policy (this
assumes you are past the initial six-month guaranteed issue period).

Finally, if you already have a Medigap policy when you move, you can take that policy with you,
as another attachment to this letter explains. It’s also likely that you can keep the same Part D
stand-alone plan, since most of these plans, including the Silverscript Choice plan in your
evaluation, are national plans.

Other Medigap features

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).

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