Page 7 - Cover Letter and Evaluation for Margaret Rockey

One way to think of this is that you pay higher premiums to reduce your out-of-pocket risk. The
same principle applies to property and casualty insurance -- you may decide to pay a higher
premium to get a lower deductible. With Medicare supplemental coverage, younger and
healthier retirees may be willing to accept the higher risk because they can usually save money
in an Advantage plan, while people with health issues are more likely to get a Medigap policy
and stand-alone drug plan.

During each year’s annual open enrollment period (October 15 – December 7) you may switch
from one Advantage plan to another or from one stand-alone drug plan to another. You may
also be able to dis-enroll from an Advantage plan and get a Medigap policy and a stand-alone
drug plan -- but as mentioned, you will need to answer health-related questions and disclose
any pre-existing conditions before you can get a Medigap policy.

In conclusion, Margaret, there are a couple of things to keep in mind as you make the transition
to Medicare. On your initial visits to your doctors after June 1, show the office staff your new
enrollment cards. That will help to avoid any billing confusion. Also, you’re entitled to a free
“Welcome to Medicare” physical (see page 11 of the evaluation), but you’ll probably have to
request it.

Sincerely,

David Armes, CFP®

Attachments to this letter: List of your Rx drugs, dosages, and monthly quantities
AARP Medigap early enrollment discounts

Separate attachment: Requesting a formulary exception

WDA:12115

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