Page 5 - Cover Letter & Evaluation for Carol Evans

Premiums for Medicare Select plans are generally 8%-12% lower than for standard Medigap
policies, and the coverage is identical so long as you remain in network. Some insurers may
underwrite you if you later want to upgrade from a Select policy to a standard policy, which is
something you may want to check before choosing a Select plan.

Since Medigap policies are supplemental coverage and Medicare typically pays 80% or more of
the cost, there is not as much risk in a Select policy as someone might otherwise think. Still,
there could be situations in which it could limit your access to the providers you want to see or
when it could result in a high out-of-pocket expense. Attached to this letter is Medicare’s
explanation of how Select policies work.

Rx Drug Plan Coverage

People who have Medigap policies are required to have Part D stand-alone plans even if they
do not take any Rx drugs. As discussed earlier, the one drug you currently take – Prolia – is likely
to be covered by Part B if you receive your injections in a doctor’s office or if they are
administered by a medical professional. But you should verify with your doctor’s office that
these injections are covered by Part B.

Since Prolia is the only drug you take, if it is covered under Part B you will want to enroll in the
Part D stand-alone plan that has the lowest premiums. That’s the AARP Medicare Rx Select
Prescription Drug Plan. The AARP Medicare Rx Select plan does not have Walgreens in its
pharmacy network, and so if you need short-term prescriptions you would need to get them
filled elsewhere. CVS and Costco are preferred pharmacies in this plan.

Carol, if it should turn out that your Prolia injections are covered by Part D instead of Part B,
then the AARP Medicare Rx Select plan is probably not the lowest-cost option (if that’s the case,
let me know and I will use the Medicare Plan Finder to identify the lowest Part D stand-alone
plan for Prolia).

Finally, there are a couple of other things to keep in mind as you make the transition to
Medicare as your primary coverage. On your initial visits to your doctors after August 1, show
the office staff your enrollment cards for Medicare A&B, your Medigap policy and your Part D
stand-alone plan. That will help avoid 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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