Page 3 - Evaluation for Tom Tappan

1) Medigap Plan F. This is the most comprehensive of any Medigap plan and it covers all of
Medicare’s gaps, i.e., you will have no cost-sharing for Medicare-covered services. And if
you see a doctor who does not accept Medicare assignment, any excess charges levied
by that doctor will also be covered. You can likely buy a Plan F policy for less than $3,500
or so a year. This is good but expensive coverage.

2) Medicare Plan L. This plan is less comprehensive than Plan F but still has strong
benefits. Its estimated annual premiums are in the $2,750 range. Even though you will
have some cost-sharing in this plan, you will likely come out a few hundred dollars
ahead of what you’d pay in Plan F – that’s unless you use numerous medical services or
undergo expensive treatments.

This plan has a $2,560 out-of-pocket limit (it is one of only two Medigap plans that have
OOP limits). But the limit applies only to those services that the plan covers. As an
example, Plan L does not cover the $183 Part B deductible, and so any payments you
make toward the deductible will not count toward the OOP limit.

One minor benefit that both Plan F and Plan L have that the BofA plans do not have is some
coverage for foreign travel emergencies. Also, Plan F has no co-payments for Medicare- covered
services, whereas the BofA plans require small co-payments. But the BofA comprehensive plan
has a $600 out-of-pocket limit for covered services, so even if you assume that you will have
enough co-payments in a year to reach the $600 limit, you will still have saved a significant
amount in the BofA plan. The benefit designs and estimated annual premiums for all Medigap
plans are shown on pages 6-7 of your evaluation.

The two BofA Medicare Advantage PPO plans in your evaluation

1) BofA Medicare Advantage Core Plan (a PPO): This plan’s annual premiums are about
$550 less than those in the BofA Medicare Advantage Comprehensive Plan. But the
additional coverage that you get with the Comprehensive Plan makes this extra cost
worthwhile. In the Comprehensive Plan, for example, your out-of-pocket limit is $2,400
lower and your co-payments are smaller than in the Core plan.

2) BofA Medicare Advantage Comprehensive Plan (a PPO). This is solid coverage with an
excellent benefits package. As far as can be told from the benefit summaries, the only
possible problem would be if you wanted to see a physician who does not accept this
plan, in which case you would have to pay full cost. Otherwise, there are no network
restrictions.

Rx Drug Costs

Your prescription drug costs will be almost $3,000 lower in the BofA Silverscript plan than in the
lowest-cost unsubsidized Part D stand-alone plan. In Attachment D1, I assumed that the three
brand-name drugs you currently use are at the highest available tier (specialty drugs). And I

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