Page 6 - Cover Letter and Medicare Evaluation for Michael Bichy

calculated your Rx drug costs in each option. In all the drug plans in your evaluation, you may
need to get your physician’s prior authorization for tadalafil (the generic version of Cialis). And
Armour Thyroid is not covered by Part D, so you might ask your physician if there is a substitute
drug that will be covered. If you do change drugs, I’ll be glad to re-run them to see if another
plan is a better choice.

The stand-alone drug plan with the lowest costs for your Rx drugs next year is the AARP
MedicareRx Walgreens Plan. It will cost an estimated $653 cost next year at Rite Aid (premiums
+ co-payments). That’s about $500 more than your drugs will cost in either of the Advantage
plans, a substantial difference. Advantage plans often use some of the monthly payments they
receive from Medicare to subsidize their drug coverage, knowing that this is an important
selection criterion for people looking for low-cost options. That’s why Advantage plans’ costs
for prescription drugs are in some cases much lower than those of stand-alone drug plans.

Drug plans sometimes designate “preferred” pharmacies where you will usually get the lowest
prices (not all drug plans have preferred pharmacies, though). Walgreens is the preferred
pharmacy in the AARP MedicareRx Walgreens plan, but you will save only about $32 a year vs.
what your drugs will cost at Rite Aid. My understanding is that you’re already enrolled in an
AARP stand-alone plan, and if you’re in this AARP plan you don’t need to change your drug
coverage unless you decide to switch to an Advantage plan.

In the two Advantage plans in your evaluation, your Rx drug costs next year are estimated to be
$153 in the Humana Gold Plus HMO-POS plan and $186 in the AARP Medicare Advantage
Choice Plan 1 (PPO). Neither plan has preferred pharmacies in your area, and their costs at Rite
Aid are roughly comparable to their costs at other pharmacies (see Appendices C1 and C2).

To enroll in either of the Advantage plans, before December 7 call the toll-free numbers shown
on pages 2-3 of your evaluation and ask to be enrolled for the 2023 plan year. Then Medicare
will dis-enroll you from your current drug plan at year end. You will also need to contact AARP
to let them know you will be dropping your Medigap policy at the end of this year. Be sure to
get some form of written verification, e.g., an e-mail message, that you are dropping your
Medigap policy at the end of 2022. If you decide to continue with Medigap coverage (whether
with your current Plan F or with a different Medigap plan), you want to make sure that you are
enrolled in the AARP MedicareRx Walgreens stand-alone plan for the 2023 plan year

Michael, please let me know if you have any questions or would like additional information.

Sincerely,

David Armes, CFP®

Attachment: Medicare’s explanation of phase-out of Medigap Plans C and F
Appendices
WDA:102433

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