Page 2 - Cover Letter and Evaluation for Fred Heald

Acquire a Medigap policy

In your questionnaire you indicated that you want to get a Medigap policy, probably Plan G.
Your evaluation compares three Medigap plans – Plans G, N, and L. Your wife Diane has Plan F,
but that plan is not available to people who turn 65 in 2020 or later (although people whose
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65 birthdays were in 2019 or before can still get Plan F).

Plan G is almost as comprehensive as Plan F, the only difference being that Plan G does not
cover the Part B deductible ($198 this year). In the long run, Plan G will likely become a more
cost-effective choice as the number of Plan F policyholders gradually declines and insurance
companies have more freedom to raise prices.

It might be helpful to review certain features that all Medigap policies share (you may already
be aware of these). They can be purchased during the first six months you have Part A and Part
B without your having to answer health-related questions. But after that six-month period has
past, if you want to acquire a Medigap policy, you will likely have to answer questions about
your health before receiving a quote. And after this initial six-month period, those who have
serious pre-existing conditions may not be able to purchase a Medigap policy, change their
policy to a different insurer, or upgrade from a less comprehensive to a more comprehensive
Medigap plan.

Perhaps the most desirable attribute of Medigap policies is the flexibility they offer. There are
no networks, and you will be covered when you see any provider who accepts Medicare (as
some 99% of doctors and public hospitals do). There are exceptions such as Dr. Konda, but with
a Medigap policy you will have the ability to go to virtually any doctor, hospital or clinic in the
U. S. and be covered.

Medigap policies do not cover routine dental and vision care or hearing aids (although a few
insurers have been including limited dental or vision coverage in their policies). And Plans G and
N in your evaluation include some benefits for medical emergencies while traveling outside the
United States (as shown on pages 6-7).

Here are summaries of the three Medigap plans compared in your evaluation. They are listed in
the order of their comprehensiveness.

1) Medigap Plan G. This is the most comprehensive Medigap plan available to you. After
you’ve paid the $198 Part B deductible, you won’t have any further payments for
Medicare-covered services during the year. The evaluation assumes that your premiums
for this plan will be about $2,200 a year, or just over $180 a month, although you may
be able to get a lower premium.

2) Medigap Plan N. This is a slightly less comprehensive plan than Plan G and it has some
small gaps (pages 6-7 show where these gaps are). People in relatively good health who

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