Page 4 - Cover Letter and evaluation for Katherine Kensky

health care inflation. UHC/AARP policies can be solid choices if they are attractively priced, but
you should be aware that because of the smaller discount each year until you are 75, your
premiums may rise more quickly in a UHC/AARP policy than with many other insurers. After you
are 75, the UHC/AARP premiums should increase more slowly.

The premiums listed in Appendices B2 through B5 include the various discounts that companies
offer, but those in Appendix B6 do not. In addition to the discounts, some insurers offer
additional benefits like membership in Silver Sneakers, which give you access to more than
12,000 gyms and health clubs nationally. Appendix B1 lists the toll-free numbers of the
companies that sell Medigap Plan F in Georgia (virtually all insurers sell Plan F). You can use this
list to call the companies that you want quotes from.

Which of Your Doctors Accepts Medicare Assignment?

In deciding which Medigap plan you want, one factor to consider is whether your doctors
accept Medicare assignment. Providers who accept assignment have agreed to accept
Medicare-approved rates. And if they do not accept assignment, they can charge up to 15%
more. Plans F and G cover this additional 15% surcharge, but Plans N and L do not. Usually
these additional charges are small -- in the $10-$20 range. But occasionally there can be a
larger charge for a more expensive treatment. Appendix A shows the Medicare web site’s
printouts indicating that both of your Sacramento area doctors accept assignment.

Rx Drug Plan Coverage

If you buy a Medigap policy you will also need to enroll in a Part D stand-alone plan. You can
save about $470 next year by enrolling in the Humana Preferred Rx Plan and switching to mail-
order refills. That’s compared to enrolling in the lowest-cost plan for monthly refills -- the Aetna
Medicare Saver Rx Plan. Appendix C has a side-by-side comparison of these two plans.

Whichever plan you choose, you will probably want to get new prescriptions from your present
doctors. You might check with the plan that you enroll in about how to forward the new
prescriptions to the plan so that they will be available for refill shortly after January 1.

Mrs. Kensky, please let me know if you have any questions. Also, 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 January 1, show the office staff your enrollment cards for
Medicare A&B, your Medigap policy and your Part D stand-alone plan. 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®

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