Page 3 - Cover Letter and Evaluation for Nobuko Christy

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 or upgrade from a less comprehensive to a more comprehensive
Medigap plan after this initial six-month period.

Perhaps the most desirable attribute of Medigap policies is the flexibility they offer. There are
no networks, and so you will be covered when you see any provider who accepts Medicare (as
some 99% 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
do include, though, some benefits for medical emergencies while traveling outside the United
States (as shown on pages 6-7).

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

1) Medigap Plan F. This is the most comprehensive Medigap plan, covering all of
Medicare’s gaps. If you get Plan F, you will have no cost-sharing for Medicare-covered
services. You can likely purchase a Plan F policy for $2,450 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 2019 is $185. 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. I’ve estimated that you can get Plan G for
$2,250 a year or less, or about $200 less than Plan F.

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
$1,900 a year.

See pages 6-7 of the evaluation for the benefit designs of all 10 Medigap plans.

The pricing of Medigap policies

It’s good to give some thought as to the company that you will buy your policy from and to
make a few calls to get current quotes. While it’s important to choose a company that has
relatively low premiums, you may also want to factor in a company’s financial strength and size.

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