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Finally, if you want to continue getting monthly refills at your local pharmacy, in three of the
plans you can save money in by going to Walgreens instead of CVS (in the AARP Medicare
Complete Choice Plan 2, it doesn’t make any difference which pharmacy you go to).

Analysis

As you can see on the comparisons on page 3 of the evaluation, there are substantial
differences in premiums and Rx drug costs among the four options. If you decide to get a
Medigap policy, your premiums will be much higher but your out-of-pocket risk will be lower. In
Plan F, for instance, your entire medical cost for services covered by Medicare will be paid for
by your premiums (including your Part B premiums).

The two Advantage plans, on the other hand, have zero premiums but each plan has a sizable
amount of risk because of its high out-of-pocket limit. Still, if you remain healthy, it’s likely you
will save quite a bit by enrolling in one of the Advantage plans, although in the case of a serious
illness you could wind up paying more.

Your prescription drug costs are substantially lower in either of the Advantage plans than with a
stand-alone drug plan. In the AARP Medicare Complete Choice Plan 2, if you get mail-order
refills, the only fixed cost you’ll pay for medical as well as drug coverage is your Part B premium.
And in this plan your minimum costs are $3,500+ less than with Plan F and the lowest-cost Part
D stand-alone plan. That difference, however, will become smaller as the year progresses
because you will have co-payments in the AARP plan but not with the Medigap policy.

Mr. Doe, after you’ve reviewed the evaluation please let us know if you have questions. Also,
there are a couple of things to keep in mind as you make the transition to Medicare for your
primary coverage. On your initial visits to your doctors after May 1, show the office staff your
new enrollment cards for Medicare (A&B) and the health plan you’ve chosen. That may help to
avoid any billing confusion.

And on your first visit to the pharmacy, show them the enrollment card for your Part D
coverage, which will make things go more smoothly when your doctor calls in a prescription for
you. Also, you’re entitled to a free “Welcome to Medicare” physical (see page 11 of the
evaluation), but you’ll likely have to request it.

Sincerely,

David Armes, CFP®
Attachments
WDA:416

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