Page 5 - Evaluation for Harry Coverston

In either of the Advantage plans, you can trim your Rx drug costs by switching to mail-order
refills. Your annual costs in 2018 are $48 if you were to switch to mail-order refills in the AARP
Medicare Complete Choice Plan 2. And the annual costs are zero in the Humana Choice Florida
PPO plan if you get mail-order refills.

Comparing the two types of coverage

People in good health may be able to save substantial amounts by enrolling in an Advantage
plan. In the two Advantage plans in your evaluation, your minimum costs are low because there
are no health plan premiums or deductibles. The tradeoff is that in Advantage plans you are
taking on greater risk. In each of the two plans, for example, the out-of-pocket limit is $10,000
if you include out-of-network services.

As shown on page 3 of the evaluation, your total minimum for fixed costs are at least $2,000
less in the Medigap plans than in the Advantage plans. That means, on a 12-month basis, you
start the year $2,000 or more ahead, but those savings will be reduced as you go through the
year because you will have relatively few co-payments in the Medigap plans but could have
substantial co-payments in the Advantage plans. And because neither of the PPO plans includes
both of your doctors in its network, your out-of-pocket risk is greater than if they were both
network providers.

Harry, 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 plan you’ve
chosen. 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: Your Rx drug list
Advantage plan networks and your doctors
Enrollment checklist

WDA:12115

5