Page 2 - Cover Letter and Evaluation for Debbie Workman

and Part B without having answering health-related questions. After that six-month period
guaranteed-issue period is past, if you do not already have a Medigap policy or if you have
Medigap Plan A, you will likely have to answer questions about your health before you can get
one.

Perhaps the most desirable attribute of Medigap policies 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).

As you indicated in your questionnaire, your current family doctor (Mr. Kevin Bichler) does not
accept Medicare nor does Optimal Healthcare, the firm for which he works. It’s possible that if
he orders tests and treatments from outside providers such as labs and imaging centers, those
tests will not be covered by Medicare. If you plan to continue seeing him occasionally, this is
something you might want to discuss, since some doctors can make referrals for services that
Medicare will cover while other doctors cannot.

If you decide to get a Medigap policy, you will need also to enroll in a Part D stand-alone drug
plan. Medigap policies do not cover routine dental and vision care or hearing aids. Plan F
includes some benefits for medical emergencies while traveling outside the United States. The
benefit designs for all 10 Medigap plans are shown on pages 6-7. Here are summaries of the
two Medigap plans in your evaluation.

1) Medigap Plan F. This is the most comprehensive any Medigap plan, covering all of
Medicare’s gaps. That means you will not have any cost-sharing for Medicare-covered
services and that your entire cost for these services will be in your premiums. Beginning
in 2020, Plan F (and Plan C) will no longer be sold, although people who already own this
plan at that time may keep it. In the state of Washington you can likely purchase a Plan
F policy for $2,400 a year or less.

2) Medigap Plan L. This is a less comprehensive plan. One of its nice features is its low
$2,620 out-of-pocket limit – it is one of only two Medigap plans that have 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 ($183 in 2018) is not covered and so any money
you spend toward the deductible will not apply to the out-of-pocket limit. Annual
premiums for Plan L are about $1,650, although you may be able to purchase a policy
for less. In Washington few insurers sell this plan, but based on the premiums shown in
the appendices, unless you go to your doctors frequently or have expensive treatments,
you will likely come out $200-$300 ahead of what you’ll pay in Plan F premiums.

There are other good Medigap plans, of course. Plan G’s benefits are similar to those of Plan F,
the only difference being that Plan G does not cover the Part B deductible ($183 in 2018).
Therefore if you can save more in premiums than the amount of the Part B deductible, you
come out ahead. Plan N, which your husband Bob has, is also a popular choice, and (like Plan L),

2