Page 2 - Cover Letter and Evaluation for Margaret Rockey

In your questionnaire you indicated that you would like to see comparisons of 1) Advantage
plans and 2) Medigap policies combined with prescription drug plans. Here are the steps to
follow:

 To enroll in one of the Advantage plans compared in your evaluation, you can
call the plan’s toll-free number shown on pages 2-3 of the evaluation. Make sure
that the person you speak with understands that you want your coverage to
begin on June 1.

 If you decide to get a Medigap policy and a Part D stand-alone plan, you should
first decide which Medigap plan you want – Medigap Plan G or Medigap Plan N
or another plan. Then call three or more insurers from the list in Appendix B3 to
get current quotes before deciding which company you’ll get your policy from.

 To enroll in the Part D stand-alone plan that has the lowest costs for your Rx
drugs, call the plan’s toll-free number, which is shown on page 4 of the
evaluation and in the Rx drug coverage section below.

The two Medigap plans in your evaluation

Two of the four options compared in your evaluation are Medigap policies – Medigap Plan G
and Medigap Plan N – and so It might be helpful to review certain features that all Medigap
policies share (you may already be aware of these).

Perhaps their most desirable feature is the flexibility they offer. Since Medigap policies do not
have networks, you will be covered when you see any provider who accepts Medicare (as some
99% of doctors and public hospitals do). That means if you have a Medigap policy, you can go to
virtually any doctor, public hospital or clinic in the United States and be covered.

Another strength is that Medicare, not the insurance company, makes the coverage decisions.
And if Medicare approves a service or treatment, the Medigap insurer must also cover it, up to
policy limits. Because Medicare is more lenient in approving certain treatments than are
insurance companies, Medigap policyholders may in some cases be covered for those
treatments when people in Advantage plans may not be (the Advantage plan might say that the
treatment is not medically necessary). For that reason, people with health issues will usually
choose to get a Medigap policy if they can afford its higher premiums.

Medigap policies do not cover routine vision and dental care or hearing aids (none of which are
covered by Medicare). Like Medicare, however, they do cover diseases of the eye (glaucoma,
cataracts, etc.) Also, with the exceptions of seldom sold Plan K and Plan L, Medigap policies do
not have out-of-pocket limits, although that is rarely an issue because Medicare’s underlying
catastrophic coverage is strong. And some Medigap plans, including the two compared in your
evaluation, include coverage for foreign travel emergencies.

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