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May 10, 2018

TO: Beth Schneider

As we discussed, it would be a good idea for Gary to get three or so current quotes for Medigap
policies and to verify that there are no waiting periods that will affect him. Attached to this
letter is a brief description of the Medigap waiting periods, which you are already familiar with.

Appendix A is Gary’s prelim Rx drug list, which he may want to check. I won’t run the final Rx
drug costs until I know this is accurate.

Appendix B is the list of insurers who sell Plan F in Georgia – most of these also sell Plan G,
which is a good alternative. As you may know, the only coverage difference between F and G is
that Plan G does not cover the Part B deductible, which is $183 this year. Often the premium
savings are larger than the Part B deductible amount (although this year Gary will have only 7
months of premium savings).

Appendices C1 and C2 are the current premiums listed by CSG Actuarial, which is a service for
insurance brokers. A few of these premiums may be lower than Gary can obtain because the
commissions aren’t included (there’s no way for me to know which ones they are).

Appendix D is a printout for the Plan F premiums that was recently done for another client in
your area. This appendix includes additional information that the client wanted (she paid an
additional fee for it). It shows most companies’ rate increase histories, their number of
Medigap policyholders in Georgia, and their loss ratios.

While there’s no surefire way to predict which companies will have low or moderate premium
increases in future years, larger companies (those with more policyholders in Georgia) as well
as those with loss ratios of 80% or lower are in better positions to have moderate premium
increases (but there also factors they can’t control, e.g., health care inflation).

I looked at the Medicare comparison you did -- are those numbers for Gary only?

Sincerely,

David Armes

Attachment & appendices

WDA5107