Page 3 - Cover letter and appendices for Michael D Johnson

from CSG Actuarial, a firm that provides quotes for insurance agents. Some of the CSG
premiums may be lower than you can get because the commissions are not included (there’s
no way for me to know which ones these are).

Shown below are the names and phone numbers of four Medigap insurers that have solid
financial ratings, low premiums for Plan G, and zero waiting days (according to the California
Dept. of Insurance premium listings in Appendix B1). You can call each company’s toll-free
number to get a current quote and to ask 1) if you can get a Medigap Plan G policy that will go
into effect November 1, or 2) if you can be issued a policy that will go into effect on December
1. Remember that you cannot be asked health-related questions.

Insurance company and toll-free number Est. annual Plan G premiums

Health Net Life Insurance Company (800) 926-4178 $1,860
State Farm – any State Farm agent $1,524 *
Thrivent Financial for Lutherans (800) 847-4836 $2,053
USAA Life Insurance (if you are a veteran) (800) 531-8722 $1,640 *
*May not include commissions

Another possible option is Blue Shield of California (800) 963-8008, which has low premiums for
Plan G. But Blue Shield is not listed on the California DOI list and so I don’t know if they have
zero waiting days for pre-existing conditions.

Your Rx Drug Plan Coverage

Because Medigap policies do not include prescription drug coverage, you will also need to
enroll in a stand-alone drug plan. The lowest-cost plan for your drugs for the last two months of
this year is the Aetna Medicare Rx Select Plan, which has a $19.10 monthly premium.

In this plan, your total costs (premiums + deductible + co-payments) for the last two months of
2019 will be $105.14 if you get your prescriptions filled at a CVS pharmacy. But if you use Rite-
Aid, it will cost $252.80 (which is an additional $126.40). The reason that Rite-Aid will cost more
is that, unlike CVS, it is not a preferred pharmacy in this plan. You can enroll in this plan by
calling its toll-free number at (855) 429-0700.

When you switch over to this plan -- the Aetna Medicare Rx Select Plan -- you might ask Rite-
Aid whether your current prescriptions can be transferred to CVS. That way you won’t have to
ask your doctors for new prescriptions.

Unfortunately, if you want to keep your Rx drug costs to a minimum, you will need to switch to
a different stand-alone plan for the 2020 plan year. Stand-alone drug plans are often volatile,
and a low-cost plan in one year is often too expensive the following year. None of the lowest-
cost plans for 2020 are among the lowest-cost plans for the last two months of this year.

3