Page 1 - Cover Letter and Evaluation for Kirk Schmidt

November 1, 2017

Mr. Kirk Schmidt
14310 Campagna Terrance
Royal Oaks, CA 95076

Dear Mr. Schmidt:

Your Medicare evaluation is enclosed. Please check the information on the client data sheet on
page 5 to make sure it is correct. Also, please verify that the attached list of your Rx drugs,
dosages, and monthly quantities is accurate.

In most cases the costs shown in your evaluation are for the 2018 plan year. But in a few cases
the 2017 costs are shown because Medicare has not yet released the 2018 cost-sharing
amounts (Part A and Part B deductibles, etc.) I’ve used the 2017 cost-sharing amounts on pages
4, 6, and 7 of the evaluation. The standard Part B premiums will be the same next year as this
year -- $134 a month, although higher-income people will pay more. Your estimated
prescription drug costs are for 2018 and the Medigap premium estimates should be close to
what you will pay next year.

You indicated in your questionnaire that you are interested in comparing both types of
supplemental coverage -- Medigap policies and Advantage plans. But there only three
Advantage plans available in your zip code, all of which have very high costs for the Rx drugs
you take. These three plans also have small networks of between 250 and 500 providers, and
Dr. O’Grady is not listed in the networks of any of the three plans, all of them HMO’s sponsored
by Aspire Health. These plans, their premiums and Rx drug costs are shown in Appendix C.

Since there are no Advantage plans in your area that appear to be suitable for you, the
evaluation compares four Medigap plans (Plans F, G, N, and L), all of which provide good
coverage. Plans F and G are similar, Plan N has slightly more cost-sharing and Plan L even more.

Since the evaluation compares four Medigap plans, it might help to review some features that
all Medigap policies share (you may already be aware of these). Medigap policies can be
purchased during the first six months you have Part A and Part B without your having to answer
health-related questions. But after that six-month period has past, if you want to to upgrade to
a more comprehensive Medigap plan, you will likely have to answer questions about your
health before receiving a premium quote. Also, people who have serious health issues may not
be able to purchase a Medigap policy after that initial six-month period.