Page 4 - Cover Letter & Evaluation for Helen Dorroh

CSG Actuarial’s premiums can be helpful in a couple of ways. First, they can serve as a starting
point to identify the companies that have lower premiums. Then you can call two or three of
those companies for current quotes; second, CSG Actuarial also shows the insurance
companies’ financial ratings by A.M Best and (for the larger companies) Standard & Poor.

Georgia is among a handful of states that require Medigap insurers to set their initial premiums
high enough to account for future age increases. This is called an “issue-age” rating and it
results in higher initial premiums but lower annual increases. The initial premium is based on
the policyholder’s age when he/she applies. In most other states, Medigap insurers increase
their premiums by about 3% a year just because you are a year older, and then they add in
other costs for health care inflation, claims experience, and so forth.

Discounts

Many insurance companies that sell Medigap policies offer discounts of various kinds. As an
example, some companies offer discounts for automatic debit payments of monthly premiums.
Many insurers offer a discount when both spouses buy a policy. This household discount can
range between 3% and 12%, depending on the company.

Something to keep in mind is even if Paul does not start out with a Medigap policy, if he later
gets one from the same company that issues yours, you will both be eligible for the discount if
that company offers one. The CSG Actuarial premiums show the amount of the household
discount (as a percentage of the premium), but the premiums listed do not include the
discounts (although I can re-run the premiums with the discounts included if you wish).

In addition to discounts, some insurers offer additional benefits like membership in Silver
Sneakers, which give you access to more than 12,000 gyms and health clubs nationally.
Appendix B5 lists the toll-free numbers of the companies that sell Medigap Plan G in Georgia.

All of Your Doctors Accept Medicare Assignment

As you noted in your questionnaire, all your doctors accept Medicare assignment, which means
they accept Medicare’s approved rates. Doctors who do not accept assignment can charge up
to 15% more than the approved rates, although Plans F and G will cover that additional charge.

Rx Drug Plan Coverage

As you know, if you buy a Medigap policy you will also need to enroll in a Part D stand-alone
plan. Also, attached to this letter is the list of your Rx drugs and dosages that you created and
that was used to identify the lowest-cost plans. Please check to make sure that this information
is still correct.

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