Page 2 - Cover Letter and Evaluation for Bob O'Connell

Perhaps the most desirable attribute of Medigap policies is the flexibility they offer. There are
no networks, and you will be covered when you see any provider who accepts Medicare. That
means you will can 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. Dr. Brennan
accepts Medicare-approved rates, however, which means that some dental services he
provides are covered by Medicare. You might discuss this with him on your next scheduled visit.
And Plans F, G, and N in your evaluation include some benefits for medical emergencies while
traveling outside the United States (as shown on pages 6-7).

Following are summaries of the four Medigap plans in your evaluation. They are listed in order
of their comprehensiveness.

1) Medigap Plan F. The most comprehensive Medigap plan, covering all of Medicare’s
gaps. If you get Plan F, then, you will have no cost-sharing for Medicare-covered
services. In Mecklenberg County, you can likely purchase a Plan F policy for $1,800 a
year or less. Beginning in 2020, Plan F and Plan C will no longer be sold, although
policyholders who already have either of these plans at that time may keep them.

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 2018 is $183. Frequently people will save
money by choosing Plan G instead of Plan F because they will save more in premiums
than they will pay for the Part B deductible. Estimated annual premiums are $1,600.

3) Medigap Plan N. This is slightly less comprehensive 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 often will likely save $200-$300 a year in this plan compared to
the higher-premium Plan F. Estimated annual premiums are $1,400 a year.

4) Medicare Plan L. This is the least comprehensive of the four Medigap plans compared in
your evaluation. One nice feature of Plan L is its low $2,620 out-of-pocket limit – it is the
only Medigap plan in your evaluation that has an OOP limit. But the limit does not
include premiums and applies only to the services the plan covers. As an example, the
Part B deductible is not covered by this plan and so any money you spend on the
deductible will not apply to the out-of-pocket limit. Annual premiums for Plan L are
about $1,300.

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 an insurer that has
relatively low premiums, you may also want to factor in the company’s financial strength and
size. As a rule, larger companies have slightly lower annual premium increases, according to a
government study a few years ago.

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