Page 4 - Cover letter and evaluation for Jack Hosier

Discounts

Insurance companies that sell Medigap policies offer discounts of various kinds. As an example,
some companies have discounts for automatic debit payments of monthly premiums or for
paying for a year’s premiums in advance. The largest discounts are typically available when
both spouses buy their policies from the same company. While not all companies offer these
“household discounts,” the ones that do often have substantially reduced premiums.

In addition, the UnitedHealthcare/AARP Medigap policies have an early enrollment discount
that in your case is 9% below AARP’s standard rate. This discount is calculated by multiplying
3% by the number of years that someone is younger than 75. For someone who’s 72, the
discount equals 3 years x 3%, or 9%. The discount is reduced by 3% each year until you turn 75.

Consequently, if you acquire an AARP policy, you may have two increases a year – one a 3%
increase associated with the reduced discount (until you turn 75) and the other an increase for
health care inflation. AARP policies can be good choices if they are attractively priced, but you
should be aware that because of the reduced discount each year until you are 75, your
premiums may rise more quickly than with many other insurers. After you turn 75, the AARP
premiums will likely increase more slowly. The AARP policies also typically offer a 5% discount
when both spouses buy a policy.

In addition to discounts, some insurers provide extra benefits such as membership in Silver
Sneakers, which give you access to more than 12,000 gyms and health clubs nationally.

Rx Drug Plan Coverage

You will also need to enroll in a Part D stand-alone plan. You might check the list of your Rx
drugs and dosages that is attached to this letter and that was used to find the lowest-cost
plans. I could not find an exact dosage match for amlodipine/valsartan, so I chose the dose that
seemed closest.

The lowest-cost plan for your drugs if you get mail-order refills is the Humana-Walmart Rx Plan.
For mail-order refills in this plan, your estimated 2018 costs are $341 – that includes premiums,
deductible, and co-payments. The only preferred pharmacies in this plan are Walmart
Pharmacies, and if you need a short-term prescription filled, there could be a substantial price
difference in getting it filled at CVS or at a Walmart Pharmacy (especially if it’s a brand-name
drug).

If you want to get preferred pricing at a CVS Pharmacy, the lowest-cost plan is the Aetna
Medicare Rx Select Plan. Its estimated 2018 costs are a few dollars less than the Humana-
Walmart Rx Plan, assuming you get monthly refills at CVS.

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