Page 3 - Evaluation for Dirk Huybrechts

The benefit designs of these three plans and the other plans are shown on pages 6-7 of the
evaluation.

Medigap premiums from the California Department of Insurance and CSG Actuarial are listed in
Attachments B1 and B2. The CSG list does not include contact phone numbers but the California
DOI list does. Because you are approximately a year older than your wife, your premiums will
likely be 3% to 4% higher than hers.

Also, CSG Actuarial’s premium list indicates the companies that offer household discounts when
both spouses buy a Medigap policy. When a household discount is indicated, the premiums that
are shown include the discount.

Before purchasing a Medigap policy, we recommend that you call at least three insurance
companies. A large government study a few years ago indicated that larger insurance
companies tend to have slightly smaller annual premium increases.

If you choose a less comprehensive Medigap plan such as Plan L, the UnitedHealthcare policies
endorsed by AARP allow you later to upgrade to a more comprehensive plan without answering
health questions. If that is something you want to consider, you should verify with UHC that
you’ll later be able to switch to one of the more comprehensive plans (from Plan L to Plan F)
without answering questions about your health.

Something else you may want to be aware of is a California law giving Medigap policyholders a
guaranteed right to switch to a different insurance company during the 30-day period following
their birthdays each year. During this period, insurers cannot ask health-related questions.
An explanation of the birthday rule (as it is called) is attached. You cannot, though, use this rule
to upgrade to a more comprehensive plan – you can use it only to move laterally, e.g., from
Plan F sold by one insurer to Plan F sold by a different insurer, or to a less comprehensive plan.

Medicare Advantage plan

There is only one Advantage PPO plan in Los Angeles County and it’s included in your evaluation
so that you can at least compare the differences between the two types of coverage.

This Aetna plan’s best features are its above-average quality rating of 4 stars from Medicare,
and a large network of more than 9,000 providers. But it has several negatives – a $750 health
plan deductible, an out-of-pocket (OOP) limit of $6,700 for network services, and 40% of cost if
you see a non-network provider. Moreover, any out-of-network costs count toward a higher
$10,000 OOP limit.

Rx Drug Plan Coverage

As mentioned above, if you decide to purchase a Medigap policy, you will also need to enroll in
a Part D stand-alone plan. The Humana-Walmart Rx Plan is your best choice here – its

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