Page 2 - Cover Letter and Evaluation for Gary Caskey

Also, as you know insurance companies can impose a waiting period of up to six months for
treatment of pre-existing conditions – unless you have had creditable coverage for the six
months prior to enrolling in Medicare. In most states there are only a few insurers who require
this waiting period. I’ve read that Georgia prohibits companies from having waiting periods for
Plan F and Plan G, but I’ve not seen it in an official document.

Since the evaluation compares two Medigap plans to your current employer coverage, it might
help to review some features that all Medigap policies share (you may be aware of these).
Perhaps their most desirable attribute is the flexibility they offer. You do not need referrals to
see specialists and are covered when you see any provider who accepts Medicare (as more than
98% of doctors and public hospitals do). All your doctors accept Medicare (see Appendix A).

Medigap policies do not include prescription drug benefits, and so you will also need to enroll in
a Part D stand-alone drug plan, discussed in the Rx drug coverage section below. Also, Medigap
policies do not cover routine dental and vision care or hearing aids. Plans F and G include some
benefits for medical emergencies while traveling outside the United States. The benefit designs
for all 10 Medigap plans are shown on pages 6-7. Here are summaries of the two Medigap plans
compared in your evaluation.

1) Medigap Plan F. This is the most comprehensive any Medigap plan, covering all of
Medicare’s gaps. That means that you will not have any cost-sharing for Medicare-
covered services and that the entire cost for these services will be your premiums.
Beginning in 2020, Plan F (along with Plan C) will no longer be sold, although people who
already own this plan at that time may keep it. In DeKalb County you can likely purchase
a Plan F policy for $2,200 a year or less.

2) Medigap Plan G. This plan’s benefits are identical to Plan F’s except that it does not
cover the Part B deductible ($183 this year). In many instances, people will save money
by choosing Plan G instead of Plan F because their premium savings are greater than the
Part B deductible. Beginning in 2020 when Plans F and C will no longer be sold, Plan G
will be the most comprehensive Medigap plan. Your annual premiums in this plan will
likely be $2,000 or less.

The pricing of Medigap policies

Most people who buy Medigap policies will keep those policies with the same insurance
companies throughout their retirement. In a few cases it may be difficult for them to change
companies later since they will have to answer questions about their health before they can get
a policy from a different insurer.

It’s prudent, then, to give some thought as to the company that you buy your policy from.
While it’s important to go with a company that has relatively low premiums, you may also want

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