Page 4 - Cover Letter and Evaluation for LuAnn Vander Vorste

Medicare Assignment

As shown in Appendix A, all your physicians except for Dr. Chellappah are listed on the
Medicare web site as accepting Medicare-s approved rates (or Medicare assignment). While it’s
not unusual for a doctor not to be listed, you might want to verify with Dr. Chellappah’s office
that she accepts Medicare-approved rates. Some doctors accept Medicare patients but do not
accept assignment, and they can charge up to 15% more. Plans F and G cover this 15% excess
charge, while Plans N and L do not. In the unlikely event that Dr. Chellappah does not accept
Medicare-approved rates, you might want to avoid Plans N and L.

Rx Drug Plan Coverage

As mentioned earlier, people who have Medigap policies are required to have Part D stand-
alone plans. To get a more accurate cost estimate, I reduced the usual refill frequency from one
month to two months for both of your drugs. This doesn’t affect how often you get refills.

The lowest-cost Part D stand-alone plan for your two drugs is the Aetna Medicare Rx Select
Prescription Drug Plan. To enroll in this plan, you can call its toll-free number shown on page 4
of your evaluation. As shown in Appendix C2, Bel Air Pharmacy is not a preferred pharmacy in
this plan. In most cases you will save money by getting your prescriptions filled at one of this
plan’s preferred pharmacies, including CVS, Safeway, and Save Mart. You might want to verify
this with the plan when you enroll. Also, you will likely need new prescriptions for this plan,
although you can see if your current prescriptions can be transferred effective July 1.

Finally, if you move to another state, as you indicated is a possibility, you can keep your
Medigap policy. Depending on the state you move to, your premiums might be adjusted to
reflect local medical costs, but otherwise your coverage will be the same. And most Part D
stand-alone plans are national plans, so there’s a good chance that you could keep your current
Rx drug plan if you move to another state.

Also, there are a couple of things to keep in mind as you make the transition to Medicare as
your primary coverage. On your initial visits to your doctors after July 1, show the office staff
your new enrollment cards for Medicare A&B, your Medigap policy and your Part D stand-alone
plan. 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

WDA:12115

4