Page 6 - Cover Letter and Medicare Evaluation for Mrs. Jane Miller

Another high deductible option is the high deductible Medigap plan (HD Plan G). This plan has a
$2,320 deductible for medical services in 2021. In your area the annual premiums for HD Plan G
are about $800 lower than those for the standard Plan G. One thing to be aware of is that with
a Medigap policy, Medicare pays the first 80% of most medical costs and the Medigap policy
pays some/all of the 20% balance.

Thus if you had HD Plan G and had a $1,000 medical treatment, Medicare would pay $800 and
you will pay $200 if you have not yet met the deductible. The main risk of the HD Plan G is that
you cannot later upgrade to a more comprehensive Medigap plan without answering health-
related questions (but you could switch to an Advantage plan during annual open enrollment).

Rx Drug Plan Coverage

Because you do not take any prescription drugs, your Rx drug costs are low in all of the options
in your evaluation. There are no premiums for drug coverage in either of the Advantage plans,
although the Aetna plan does have a $200 drug plan deductible. The lowest-premium stand-
alone plan is the SilverScript SmartRx Prescription Drug Plan, which has a $7.30 monthly
premium.

CVS is a preferred pharmacy in the SilverScript SmartRx plan, and if you do need to get a
prescription filled you will likely get the best prices at CVS. The Aetna Medicare Value PPO Plan
also lists CVS as a preferred pharmacy, while the AARP Medicare Advantage Choice PPO Plan
lists it as a standard (vs. a preferred) pharmacy. Not all plans designate preferred pharmacies,
and it is possible that the AARP plan is one of them.

Jane, 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 September 1, show the office staff your enrollment cards for Medicare
A&B and the supplemental coverage you’ve selected. And on your first visit to the pharmacy,
show them the enrollment card for the drug (or Advantage) plan you’re enrolled in. That will
help to avoid any billing confusion. Also, you’re entitled to a free “Welcome to Medicare”
physical (see page 11 of the evaluation), but you’ll probably have to request it.

Sincerely,

David Armes, CFP®

Attachments and Appendices
WDA:12115

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