Page 2 - Cover Letter and evaluation for Paul J. Lingane

passed, however, you will likely have to answer questions about your health before you can get
a premium quote.

Perhaps the best feature of Medigap policies is the flexibility they offer. There are no networks,
and you do not need referrals to see specialists -- you will be covered when you see any
provider who accepts Medicare. That means you can go to virtually any doctor, hospital or clinic
in the U. S. and be covered. Medigap policies are nationally standardized, so that the coverage
for a given plan like Plan F is identical regardless of the state where it’s issued or the insurance
company you buy it from.

One thing to be aware of in choosing a Medigap plan is that if you see a doctor who does not
accept Medicare assignment, he or she may charge up to 15% more than the Medicare-
approved rate. Plans F and G cover that additional charge, but Plans N and L do not. Both of
your physicians, however, accept assignment, as shown in Attachment A.

Medigap policies do not cover prescription drugs, so you will also need to enroll in a Part D
stand-alone drug plan. Nor do Medigap policies cover routine dental and vision care or hearing
aids. Plans F and N do have some benefits for medical emergencies while traveling outside the
United States, which Medicare does not cover.

Here are summaries of the Medigap plans compared in your evaluation:

1) Medigap Plan F. This is the most comprehensive of all 10 Medigap plans, covering all of
Medicare’s gaps. That means that you will have no cost-sharing (co-payments or
deductible) for Medicare-covered services. In this plan, then, your entire cost for
Medicare-covered services is in the premiums (Medigap premium + Part B premium)
and therefore your healthcare expenses are relatively predictable. You can likely buy a
Plan F policy with annual premiums in the $1,650+ range.

2) Medigap Plan G. This plan is also very comprehensive, and its only difference from Plan
F is that it does not cover the Part B deductible ($183 in 2017). If you can get this plan
for $200 less in annual premiums than you’d pay for Plan F, you’ll save money. And
there may be some years when you do not spend the deductible. This plan is not sold by
as many companies as is Plan F, and its estimated annual premiums are in $1,475+ a
year range.

3) Medicare Plan N. This is a slightly less comprehensive plan but it still has excellent
coverage. Its annual premiums are in the $1,150+ range. Even though you will have
some cost-sharing in this plan, you will likely come out $200 or $300 ahead unless you
use numerous medical services or undergo expensive treatments.

4) Medicare Plan L. This is the least comprehensive of the four plans compared in the
evaluation but it could also save you the most money, assuming you use relatively few
medical services and do not have any expensive treatments. Its annual premiums are

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