Page 4 - Evaluation for Dirk Huybrechts

estimated annual costs for your two drugs are $410 in 2017 if you get monthly refills at CVS
Pharmacy. That’s for the entire year, of course. Also, in 2017, you would have saved more than
$140 in this plan by switching to mail-order refills. If you remain in this plan in 2018, you might
want to see how much you can save by using mail-order.

In the Aetna Medicare Choice PPO plan, your Part D coverage is included in the plan’s benefits.
This plan would have cost about $300 for your drugs if you were enrolled for the full 2017 plan
year.

Analysis

There do not appear to be any Advantage plans that match your needs. That leaves a Medigap
policy as your best option. You will have less out-of-pocket risk with a Medigap policy, although
your premiums will be higher. People who enroll in Advantage plans understand that they are
accepting somewhat more risk in exchange for lower fixed costs. As an example, the three
Medigap plans compared in your evaluation have very little risk but are relatively expensive.
The Advantage plan, on the other hand, has lower fixed costs (including the $750 health plan
deductible) but you accept more risk in this plan with its high out-of-pocket limit.

The other consideration is that if you choose an Advantage plan and years from now want to
switch to a Medigap policy, you will probably have to answer questions about your health and
may be charged higher premiums if you have a serious pre-existing conditon (or in some cases
denied coverage). Usually it is not difficult to wait until later to get a Medigap policy, but there
is some risk involved in waiting. .

After you’ve reviewed the evaluation please let me know if you have questions. Also, there are
a couple of things to keep in mind as you make the transition to Medicare for your primary
coverage. On your initial visits to your doctors after October 1, show the office staff your
enrollment cards for Medicare and the Medigap policy/Part D plan (or the Advantage plan).
That may help avoid any billing confusion. And on your first visit to the pharmacy after October
1, show them the enrollment card for your Part D coverage.

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 from your primary care doctor.

Sincerely,

David Armes, CFP®
Attachments
WDA:91117

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