Page 4 - Cover Letter and Evaluation for Clay Bassett

You may need to get a new prescription for valsartan in whichever plan you choose, although in
some cases it can be transferred from your current plan to your new plan.

Analysis

Advantage plans are typically best suited for people in good health who do not have serious
pre-existing conditions and do not see their doctors frequently. They are also less likely to be
concerned about network restrictions and prior approval requirements for some treatments.

Conversely, Medigap policies are excellent coverage for people who have expensive medical
conditions, since almost the entire cost of their health care is in their premiums and there are
few if any co-pays, depending on the plan. One way to think of it is that you pay more for a
Medigap policy because you are getting better coverage and are reducing your out-of-pocket
risk. But most people do not need overly comprehensive coverage.

A middle path is to choose a less comprehensive Medigap plan like Plan L or even Plan K,
knowing than in Connecticut you can readily upgrade to more comprehensive plan regardless of
health status.

Affluent people often choose Medigap policies because of their convenience – often the only
medical payments they make are their premiums. And in some cases people have little choice
but to get a Medigap policy because no Advantage plans meet their needs, e.g., perhaps none
of their providers is in an Advantage plan network.

Clay, please let me know if you have any questions. Also, there are a couple of things to keep in
mind as you make the transition to Medicare as your primary coverage. On your initial visits to
your doctors after July 1, show the office staff your new enrollment cards for Medicare A&B
and your supplemental coverage. That will help to avoid any billing confusion. 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.

Sincerely,

David Armes, CFP®

Attachments

WDA:12115

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