Page 5 - Cover letter and evaluation for John Johnson

provider network (albeit spread over North Central Texas), an above-average four-star quality
rating from Medicare, and zero premiums as well as a zero deductible for medical coverage.

Because your fixed costs are much lower in this plan than with a Medigap policy, you might
save a substantial amount. The tradeoff is that in exchange for these lower fixed costs, you will
be accepting more out-of-pocket risk, particularly if you frequently see a non-network provider.
In this plan, for instance, you will pay 50% of most out-of-network costs for Part B services.
Medicare’s summary of this plan’s costs and benefits can be found in Appendix C2.

Rx Drug Plan Coverage

As noted earlier, Medigap policyholders are required to have Part D stand-alone plans. The
lowest-cost stand-alone plan for your two Rx drugs is the Wellcare Value Script Prescription
Drug Plan. The annual cost for your drugs in this plan is $125, whether you get mail-order refills
or monthly refills at CVS. That amount includes premiums and the plan deductible. The cost for
the last nine months of this year is $93.60. This plan’s benefit summary and its costs for your
drugs are shown in Appendix D2.

In the Advantage plan – the Aetna Medicare Choice PPO Plan -- your estimated annual costs for
mail-order refills are $266. When you enroll in an Advantage plan, you automatically also get its
Rx drug coverage, which cannot be separated from the plan.

CVS is a preferred pharmacy in both these plans, and when you need short-term prescriptions
filled you will likely get the lowest prices there.

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

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