Page 1 - Cover Letter and Evaluation for Patricia Hendrickson

January 31, 2018

Mrs. Patricia Hendrickson
86 Knickerbocker Drive
Belle Mead, NJ 05802

Dear Mrs. Hendrickson:

Your evaluation is attached. Please check the information on the client data sheet on page 5 to
make sure it is correct. The evaluation compares three options – one is your employer’s
Medicare supplemental plan for retirees and the other two are options for retirees who do not
have employer plans. For those, I chose a Medigap policy and a Medicare Advantage plan for
the evaluation. Under all three options, you will need to have Part A and Part B.

The costs shown in the evaluation are for the 2018 plan year, even though the earliest you can
enroll in Medicare is August 1, 2019 (at that point, the costs may be higher). The evaluation also
includes information about Medicare’s underlying coverage and benefits, which will probably
not change much between now and the date that your Medicare coverage begins – whether
next year or later.

Here are descriptions of each option.

Option One: Medigap Plan F

All told, there are 10 Medigap plans, each with a slightly different set of benefits. These 10
plans and their benefit designs are shown on pages 6-7 of the evaluation. Plan F is the most
comprehensive of the 10 plans, and its benefits are in some ways similar to those of the CIGNA
Medicare Supplemental Plan discussed later.

Perhaps the most desirable attribute of Medigap policies (as well as your employer’s CIGNA
Medicare Supplement) is the flexibility they offer. You do not need referrals to see specialists
and will be covered when you see any provider who accepts Medicare, as more than 98% of
doctors and public hospitals do.

There are certain benefits that Medigap policies do not cover – among these are prescription
drugs, routine dental and vision care and hearing aids. Because Medicare’s rules require that
beneficiaries have Part D coverage (or else have creditable Rx drug coverage from another
source), people who get Medigap policies must also enroll in a Part D stand-alone plan,
discussed in the Rx drug coverage section below.