Page 4 - Cover letter & Medicare evaluation for Mr. Carl Zambon

1) Medigap Plan F. This plan covers all of Medicare’s gaps, and the only cost for Medicare-
covered medical services will be your premiums (Part B + Medigap premiums). Some
people choose Plan F for the convenience of never having a co-payment for a Medicare-
covered service. You should be able to get Plan F for about $190 a month, roughly
$2,300 a year, or perhaps slightly less. See Appendix B1 for CSG Actuarial’s premium
comparisons for Plan F.

2) Medigap Plan G. This plan is identical to Plan F except that it does not cover the Part B
deductible, which will be $203 in 2021. Plan G’s annual premiums are about $200-$225
lower than those of Plan F, although this can vary quite a bit from one company to the
next (as you’ll see in the appendices). For Plan G, you should be able to get a policy for
about $2,100 a year or slightly less. See Appendix B2 for CSG Actuarial’s premium
comparisons for Plan G.

3) Medigap Plan N. While this plan is slightly less comprehensive than Plans F and G, it
nevertheless provides solid coverage. The only gaps in its coverage are the $203 Part B
deductible, up to $20 co-payments for doctors’ office visits, and a $50 co-payment for a
visit to the emergency room. This plan’s annual premiums are about $1,650. See
Appendix B3 for CSG Actuarial’s premium comparisons for Plan N.

4) Medigap Plan L. This plan is less comprehensive than the others, but it still provides
good coverage. Its gaps include the $203 Part B deductible as well co-payments for most
medical services. It also has an out-of-pocket (OOP) limit of $3,110. As you may know,
the OOP limit does not include your monthly premiums or payments for services that
the plan does not cover. As an example, Plan L does not cover the $203 Part B
deductible, and so any money you spend toward the Part B deductible will not count
toward the OOP limit. Annual premiums for Plan L are in the $1,675 range for the lower
premium insurers, but only 11 companies sell this plan in Maryland. See Appendix B4 for
CSG Actuarial’s premium comparisons for Plan L.

People in good health will often save money in a less comprehensive plan like Plan N or
Plan L, unless they see their doctors often. One thing to keep in mind is that if you
decide to get Plan N or Plan L and then later want to upgrade to Plan G or Plan F, you
will have to answer questions about your health and might not be able to upgrade at an
affordable premium.

Medigap Pricing and Discounts

In Maryland, insurers can use one of three pricing methods when they set premiums. In
Appendix B5 you can see which companies use which methods. Here are brief descriptions of
each method:

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