Page 5 - Diane Peasley's Medicare Evaluation

Analysis

As you can see from the cost comparisons on page 3 of your evaluation, your fixed (or
minimum) costs are less in the Advantage plans than in the Medigap policies. But In the
Advantage plans you accept more risk due to their high out-of-pocket limits – that’s the
tradeoff for lower premiums. If you do not use numerous medical services or undergo
expensive treatments, you could come out ahead in an Advantage plan. The other factor to
consider, of course, is that when people initially enroll in an Advantage plan and later decide to
switch to a Medigap policy, they will be asked health-related questions and could be denied
coverage.

Diane, please let me know if you have any questions. 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 January 1, show the office staff your new enrollment cards for Medicare
A&B, your Advantage plan or Medigap policy and your Rx drug plan. That will help to avoid any
billing confusion. And 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 and appendices

WDA:12115

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