Page 1 - Cover Letter and Evaluation for Clay Bassett

May 15, 2018

Mr. Henry Clay Bassett
310 Highcroft Place
Weatogue, CT 06089

Dear Mr. Bassett:

Your Medicare evaluation is enclosed. Please check the information on the client data sheet on
page 5 to make sure it is correct. In searching for plans, I used zip code 06880 because that’s
where you will move this summer. But the plans compared in your evaluation are also available
at your current address.

You indicated that you are interested in comparing both types of coverage – Medigap policies
and Medicare Advantage plans. The evaluation compares three Medigap plans (F, G, and N) and
one Advantage plan – the AARP Medicare Complete Choice Regional PPO plan. Most of the
costs shown in your evaluation are for the 2018 plan year, even though you will be enrolled for
only the last six months of the year.

Medigap policies

As you may be aware, Connecticut is one of a handful of states that require Medigap policies to
be priced the same for everyone, regardless of age or health. Thus a 65-year-old in superior
health and a 90-year-old who has serious pre-existing conditions pay identical premiums if they
have the same Medigap plan from the same insurance company. The result is that
Connecticut’s Medigap premiums are among the nation’s highest, since insurers cannot decline
coverage or charge more to people in poor health.

Connecticut’s Medigap rules, however, do provide the opportunity for retirees to wait until
years later to get a Medigap policy. That’s not the case in most other states, where if people
delay getting a Medigap policy, they either may not be able to get one or they may be forced to
pay steep premiums.

In Connecticut, retirees have a financial incentive to delay getting a Medigap policy so long as
they can find an Advantage plan that meets their needs. In later retirement, during Medicare’s
annual open enrollment period they can switch from an Advantage plan to a Medigap policy
combined with a Part D stand-alone prescription drug plan. And they can do so without
worrying about having to pay higher premiums or being denied coverage. A summary of
Connecticut’s guaranteed issue rule for Medigap policies is attached to this letter.