Page 5 - Cover Letter & Evaluation for David Steenburgen

answer questions about your health. And in a worst case, you could be denied coverage in a
standard Medigap plan and would then have to remain with the Medicare Select plan. While
that’s unlikely, you should be aware that there’s some risk there.

Finally, in many states AARP will allow its current Medigap policyholders to change from one
plan to another without having to answer health-related questions. As an example, someone
who has an AARP Medigap Plan N policy would be able to upgrade to Plan F without going
through medical underwriting. This same provision might apply in Arizona to Medicare Select
policies, i.e., if you have an AARP Medicare Select plan and want to upgrade to a standard
Medigap plan, you might not have to answer health questions. If that is something you’re
interested in, you might ask AARP. Also, BCBS may offer the same privilege (to remain
competitive with the AARP plans).

Rx Drug Plan Coverage

For mail-order refills, the lowest-cost 2018 plan for your two Rx drugs is the Humana-Walmart
Rx Plan. For the full year, this plan would cost you $309 – that includes premiums, deductible,
and co-payments for your two Rx drugs. This plan’s only preferred pharmacies are Walmart
Pharmacies, and so if you needed a short-term prescription filled you might get the lowest
prices there. Although Costco Pharmacy is in this plan’s network, it is not a preferred pharmacy.

If you are willing to switch to monthly refills, you can save money by enrolling in the Aetna
Medicare Rx Select Plan. Its annual costs are $152, which is $157 less than the lowest-cost plan
for mail-order prescriptions. Making this switching would require you to get monthly refills at
Costco or another of the plan’s preferred pharmacies such as CVS. This plan does not have a
mail-order option, so if you choose it you would get all your prescriptions filled locally. Under
“Annual Rx Drug Costs” on page 3 of your evaluation, I’ve assumed you will get monthly refills
for an annual cost of $152.

David, please let me know if you have any questions. There are a couple of things to keep in
mind as you make the transition to Medicare as your primary coverage. On your initial visits to
your new doctors after June 1, show the office staff your enrollment cards for Medicare A&B,
your Medigap policy and your Part D stand-alone plan. That will help to avoid any billing
confusion. Also, you’re entitled to a free “Welcome to Medicare” physical after June 1 (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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