Page 2 - Evaluation for Harry Coverston

After that six-month guaranteed-issue period is past, you will likely have to answer questions
about your health before you can get a Medigap policy or – if you already have one -- upgrade
to a more comprehensive Medigap plan. In most cases, it is not a problem for people to acquire
their first Medigap policies in later retirement, but there is a slight risk that you could be denied
coverage if you have a serious pre-existing condition.

With Medigap policies, you do not need referrals to see specialists and are covered when you
see any provider who accepts Medicare (as more than 99% of doctors do). Because Medigap
policies are nationally standardized, your benefits and coverage are the same in every state.

Medigap policies do not include prescription drug coverage, and if you get a Medigap policy you
will also need to enroll in a Part D stand-alone drug plan. Also, Medigap policies do not cover
routine dental and vision care or hearing aids. Both Medigap plans compared in your evaluation
do include some benefits for medical emergencies while traveling outside the United States
(which Medicare does not cover). The benefit designs for all 10 Medigap plans are shown on
pages 6-7. Here are summaries of the two Medigap plans in your evaluation.

1) Medigap Plan G. This is a very comprehensive Medigap plan, covering all of Medicare’s
gaps except for the Part B deductible ($183 this year). Once you’ve satisfied the Part B
deductible, then, you will not have any cost-sharing for Medicare-covered services. The
only Medigap plans that are more comprehensive than Plan G are Plans F and C, both of
which will no longer be sold beginning in 2020 (although people who already own either
of these two plans at the start of 2020 may keep them if they wish).

Plan G is frequently a better deal than either Plan F or Plan C. That’s because you can
save more in premiums with Plan G that you will pay for the Part B deductible. As an
example, many Florida insurers charge $200+ more for Plan F than for Plan G, even
though the only difference is that Plan G does not cover the $183 Part B deductible. In
Orange County you can likely purchase a Plan G policy for $2,200 a year or less.

2) Medigap Plan N. This is a slightly less comprehensive than Plan G, the only difference
being that Plan N requires you to pay up to $20 for a doctor’s office visit and $50 for an
emergency room visit. Unless you see your doctors frequently, you will likely save
money in this plan. Annual premiums are in the $1,750 range.

There are other good Medigap plans, of course. Plan L is attractive because of its low $2,620
out-of-pocket limit, but that limit applies only to services that the plan covers. Still, it covers
almost all of Medicare’s services except for the Part B deductible. Also, premiums do not count
toward the out-of-pocket limit.

The pricing of Medigap policies

If you decide to get a Medigap policy, it’s good to give some thought as to the company that
you will buy your policy from and to make a few calls to get current quotes. While it’s important

2