Page 2 - Cover Letter and Evaluation for LuAnn Vander Vorste

Since the evaluation compares four Medigap plans, it might help to review some features that
all Medigap policies share (you may already be aware of these). Medigap policies 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
premium quote. And people who have serious health issues may not be able to purchase a
Medigap policy after this initial six-month period.

Perhaps the most desirable attribute of Medigap policies is the flexibility they offer. As
mentioned, there are no networks, and you will be covered when you see any provider who
accepts Medicare (as some 98% of doctors and public hospitals do). That means 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. Plans F, G, and N
in your evaluation do include some benefits for medical emergencies while traveling outside
the United States (as shown on pages 6-7). See Appendix D for an explanation of the medical
coverage for foreign travel emergencies that is included in some Medigap plans (including Plans
F, G, and N).

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

1) Medigap Plan F. The most comprehensive Medigap plan, covering all of Medicare’s
gaps. If you get Plan F, then, you will have no cost-sharing for Medicare-covered
services. In Placer County, you can likely purchase a Plan F policy for $2,100 a year or
less. Beginning in 2020, Plan F will no longer be sold, although policyholders who
already have this plan at that time may keep it.

2) Medigap Plan G. This plan’s benefits are identical to those of Plan F except that it does
not cover the Part B deductible, which in 2018 is $183. In some cases, people can save
money by choosing Plan G instead of Plan F because the premium savings are greater
than the amount of the Part B deductible.

3) Medigap Plan N. This is a slightly less comprehensive plan than Plans F and G and it has
some small gaps (pages 6-7 show where these gaps are). People in relatively good
health who don’t go to their doctors frequently will likely save $200-$300 a year in this
plan compared to choosing the higher-premium Plan F. Estimated annual premiums are
$1,575 a year.

4) Medicare Plan L. This is the least comprehensive of the four Medigap plans compared in
your evaluation. One nice feature of Plan L is its low $2,620 out-of-pocket limit – it is the
only Medigap plan in your evaluation that has an OOP limit. But the limit does not
include premiums and applies only to the services the plan covers. As an example, the
Part B deductible is not covered by this plan and so any money you spend on the

2