Page 6 - Cover Letter and Evaluation for Paul Stelter

The Clear Spring Health Premier Rx stand-alone plan is a new plan in the Chicago area, and it
does not yet have a quality rating from Medicare. The Wellcare Value Script Plan, in contrast,
has a four-star quality rating, which is good for a stand-alone drug plan. But since you take
three commonly prescribed generic drugs, there should be no problems in getting your drugs in
either plan. The plans’ benefit summaries are in Appendices D2 and D3.

CVS is a preferred pharmacy in all four plans, and when you need a short-term prescription
filled, you will usually get the best prices at a plan’s preferred pharmacies. Whichever plan you
choose, you might ask if your prescriptions can be transferred to your new plan’s mail-order
service. If that can’t be done, you’ll need to request new prescriptions from your physicians.

Summary

As you can see from the costs shown on page 3 of your evaluation, your fixed (or minimum)
costs (premiums + deductibles) are much higher with Medigap policies + stand-alone drug plans
than with the Advantage plans. With a Medigap policy, then, you pay higher premiums, but
you’ll have greater flexibility in choosing providers and have less out-of-pocket risk.

People in good health who do not use expensive medical services will typically save money in
an Advantage plan, but they do accept somewhat more risk. However, the Humana Gold Plus
HMO Plan has less risk than most other Advantage plans because of its low $2,650 out-of-
pocket limit for medical services.

Paul, there are a couple of things to keep in mind as you make the transition to Medicare. On
your initial visits to your doctors after January 1, show the office staff your new enrollment
cards. That will help to avoid any billing confusion. And show your Part D enrollment
information to your pharmacist. 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®

PS. The Humana Gold Plus HMO plan could be a viable choice for your wife if Dr. Manjunath
accepts this plan (she is not listed in its network, although the directories are not always up to
date).

WDA:102220

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