Page 1 - Cover Letter and Medicare Evaluation for Dorothy Smith

November 3, 2022

Mrs. Dorothy M. Schmitt
25412 Robin Tree Lane
Ocean View, DE 19970

Dear Mrs. Schmitt,

Your 2023 Medicare evaluation is enclosed, and the costs shown in the evaluation are
estimates for the 2023 plan year. One way to lower your health care costs in 2023 is to switch
to a different stand-alone drug plan before open enrollment ends on December 7, as explained
in the Rx drug coverage section below.

You might also consider whether to remain with Medigap Plan F or switch to a less
comprehensive Medigap plan. You can switch Medigap plans at any time, so you don’t have to
do this by December 7. If you decide to switch, it’s possible that you will be subject to medical
underwriting by AARP, which means that you will be asked questions about your health.

Your evaluation compares two Medigap plans – your current Plan F and Plan N -- and two
Medicare Advantage plans. As you are aware, Plan F (as well as Plan C) are not available to
people who turned 65 in 2020 or later. But individuals like you who turned 65 before 2020 may
continue to get Plan F and Plan C (see the attachment to this letter).

Because Plan F and Plan C are being phased out, some insurance analysts have wondered
whether these two plans’ policyholders should switch to a less comprehensive Medigap plan.
Their concern is that as the number of Plan F policyholders shrinks in the coming years, those
who remain might be subject to higher premium increases and at that point being older, may
not be able to switch to less comprehensive Medigap plans.

While it’s difficult to know if that’s a valid concern, it may be prudent, since you are a younger
retiree in good health, to switch to a slightly less comprehensive Medigap plan that is not being
phased out. Plan G and Plan N are both good candidates if you decide to switch (you might also
save money by doing so).

While there may be some risk in continuing with Plan F, there’s may be an even greater risk in
switching to a Medicare Advantage plan. If you were to do this, you would likely save money, at
least in the short term, but you would not be able to switch back to a Medigap policy in later
retirement without being medically underwritten and possibly charged a high premium or
denied coverage (in that case you would have to remain in an Advantage plan). Because
retirees use more medical services as they grow older, Advantage plans will restrict their
options much more than will Medigap policies.