Page 3 - Cover Letter & Evaluation for Carol Evans

In Plan HDF, then, you would pay that $600 out of pocket unless your annual deductible
had been met. But in the other three Medigap plans in your evaluation, you would pay
nothing for your Prolia injections if they are covered by Part B. These costs are shown on
page 3 of the evaluation. Attached to this letter is Medicare’s explanation of how
injectable osteoporosis drugs are covered.

Besides Plan HDF, another Medigap plan with low premiums is Plan K. This plan has a
steep $5,200 out-of-pocket limit for covered services -- but for many Medicare-covered
services you would pay one-half as much in co-payments and co-insurance as you would
in Plan HDF. In the above example of a $3,000 charge in which you would be responsible
for $600 in Plan HDF, in Plan K you would be responsible for only $300 in annual co-
insurance payments.

Still another option is Plan L, which has a lower out-of-pocket limit of $2,620 for covered
services but also has higher premiums. With Plan L, you would be responsible for only
5% of most Part B charges, and so you would pay $150 a year for Prolia, or 5% of the
assumed $3,000 annual cost.

The UnitedHealthcare/AARP Medigap policies will generally allow policyholders to
upgrade to a more comprehensive plan without having to answer health-related
questions. AARP does not sell Plan HDF in Arizona, as far as I can tell, but it does sell
Plans K & L.

In most states AARP allows policyholders to switch to a different AARP Medigap Plan
without answering questions about their health. If that’s the case in Arizona, you could
start out with Plan K or Plan L and later upgrade to a more comprehensive plan sold by
AARP without being medically underwritten. But before relying on that, you should
verify it with AARP.

I could not get all the AARP premium information shown in Appendix B7 to display
correctly in the PDF file used for your evaluation, and so if you want you can enter your
information and get more legible pricing at the following link:

https://www.uhcmedicaresolutions.com/health-plans/medicare-supplement-plans.html

The pricing of Medigap policies

It’s good to give some thought as to the company that you will buy your policy from and to
make a few calls to get current quotes. While it’s important to choose a company that has
relatively low premiums, you may also want to factor in the company’s financial strength and
size. As a rule, larger companies have slightly lower annual premium increases, according to a
government study a few years ago.

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