Page 2 - Cover Letter and Evaluation for Clay Bassett

Medigap policies provide excellent coverage, albeit at a high price. Perhaps their most desirable
attribute is the flexibility they offer. With these policies, you do not need referrals to see
specialists and you are covered when you go to any provider who accepts Medicare (as some
99% of doctors and public hospitals do). That means you can see virtually any doctor in the U.S.
or go to any hospital or clinic and be covered. With Advantage plans, on the other hand, there
are network restrictions that can make it costly to see out-of-network providers.

Medigap policies do not include prescription drug benefits, and so if you choose to buy a
Medigap policy, you will also need to enroll in a Part D stand-alone drug plan, as discussed in
the Rx drug coverage section below. Also, Medigap policies do not cover routine dental and
vision care or hearing aids. The three plans compared in your evaluation include some benefits
for medical emergencies while traveling outside the United States.

All told, there are 10 Medigap plans, and their benefit designs are shown on pages 6-7. In your
evaluation, three of these plans – Plan F, Plan G, and Plan N – are compared. They are listed in
the order of their comprehensiveness – although they are all more comprehensive than any
Advantage plan will be.

1) Medigap Plan F. This is the most comprehensive any Medigap plan, covering all of
Medicare’s gaps. That means that if you get Plan F, you will have no cost-sharing for
Medicare-covered services. Beginning in 2020, Plan F will no longer be sold, although
people who already own this plan may keep it. You can likely purchase a Plan F policy for
$3,000 a year.

2) Medigap Plan G. This plan’s benefits are identical to those of Plan F except that it does
not cover Medicare’s Part B deductible ($183 this year). People can often save money
with Plan G because the premium savings are greater than the Part B deductible.
Estimated annual premiums are $2,800 a year. Plan G will become the most
comprehensive plan in 2020 when Plan F is no longer sold.

3) Medigap Plan N. This is slightly less comprehensive than the two other plans, and it has
small coverage gaps (pages 6-7 show where these gaps are). People in relatively good
health who don’t go to their doctors frequently will likely save $200-$300 a year in this
plan compared to choosing the higher-premium Plan F – even though in this plan you
will have small co-payments from time to time. Estimated premiums are $2,250 a year.

Because of Connecticut’s Medigap rules, it is relatively easy to switch from one plan to another.
Someone might start out with a less comprehensive plan, including one of the plans not
compared in your evaluation, and then later switch to a more comprehensive plan. Again, in
most states you would be unable to change to a more comprehensive plan without medical
underwriting. Also, you can change Medigap plans at any time during the year. But with rare
exceptions you cannot change Part D plans or Advantage plans except during annual open
enrollment (October 15 – December 7 each year).

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