Thank you WPADVBR005M(11)-GA 20550WPSENMUB_004_G 9/11

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1 Thank you... for your interest in our Medicare Supplement plans. We designed them to help you stay healthy and keep your medical costs down. It s why they are so popular. You get an added layer of security, flexibility and freedom through benefits such as these: Freedom to choose your doctor See any Medicare-approved doctor, specialist or hospital no referrals needed. Flexible Cover the gaps in Medicare you want, based on a wide range of plans and premiums. Portable Your plan travels with you wherever you decide to live in the U.S., and some plans include Foreign Travel Emergency benefits. Guaranteed renewable Medicare Supplement policies are guaranteed renewable. The Medicare Supplement plan you choose can t be canceled for any reason other than nonpayment of premium or material misrepresentation. Stable Select a Medicare Supplement plan once and you get to keep that same plan year after year unless you want to make changes. Benefits will be adjusted to keep up with Original Medicare s annual changes. Financial security Help cover unexpected costs that are your responsibility with Original Medicare such as copays, deductibles and coinsurance. A company you can trust With Blue Cross and Blue Shield of Georgia plans, you have the peace of mind that comes with being covered by a company that has been a leader for over 60 1 years. We invite you to learn more by reading this brochure. If you still have questions, we would be happy to talk with you and provide you with answers. You can call your local licensed sales agent or one of our licensed sales agents at (TTY/TDD: 711), 8 a.m. to 8 p.m., seven days a week. Or visit us online at WPADVBR005M(11)-GA 20550WPSENMUB_004_G 9/11

2 Let s talk about... Medicare. Quite simply, Medicare can be quite complicated. This guide gives you a clearer picture of how Original Medicare and Medicare Supplement plans work, and how the choices can best fit together for you.

3 Who is eligible? What is Original Medicare and who is eligible? Original Medicare is a health insurance program that is run by the U.S. government. This insurance program offers you a broad range of coverage for medical care at little or no cost to you. You are eligible to enroll in this program if you fall into one of these categories: 1 1. You are 65 or older. 2. You are under 65 with certain disabilities, including end-stage renal disease. And, both of these items describe you: 1. You or your spouse worked and paid Social Security taxes for at least 10 years. 2. You are a permanent resident of the U.S. or a legal citizen who lived in the U.S. for five years in a row. Please check for more eligibility information. What are Medicare Supplement plans and who is eligible? Medicare Supplement plans are offered by private insurers. These plans can help pay your share (coinsurance, copays or deductibles) of the costs of Medicare-covered services. You are eligible to enroll if: 1. You are 65 or older; or 2. You are under 65 and eligible for Medicare due to a disability; and 3. You are enrolled in Medicare Parts A and B. Guaranteed Acceptance Your acceptance is guaranteed if you apply for coverage before or within six months of your initial enrollment in Medicare Part B. If you ve been enrolled in Medicare Part B for more than six months, we ll have to review your health history to see if you re eligible for the plan you selected. Pre-existing Conditions If you have had at least six months of prior creditable coverage or are in a guaranteed issue situation, you don t have to wait for coverage to start for a pre-existing condition. Many types of health care coverage count as creditable coverage, but they only count if you did not have a break for more than 63 days. This prior coverage can be used to eliminate or shorten waiting periods for pre-existing conditions. A pre-existing condition is a condition either treated or diagnosed six months prior to the effective date of your policy. Remember, for Medicare-covered services, Original Medicare will still cover the condition, even if you are responsible for out-of-pocket costs during the pre-existing condition waiting period. 1 Other rules may apply. Please visit for more information. 1

4 Did you know that Medicare comes in separate parts? The simplest way to get a handle on Medicare is to understand that Medicare is a federal government health insurance program that comes in a few different parts. Medicare Supplement plans, on the other hand, are offered by private insurance companies. Following is a brief overview of those Medicare parts that can work alongside Medicare Supplement plans. Medicare Part A Medicare Part B Medicare Part A is hospital coverage that helps cover the costs for: Inpatient care in hospitals and Skilled Nursing Facilities (not custodial or long-term care). Hospice and some home health care services. What are your costs for Medicare Part A? Premium: You usually won t pay any premium for Part A coverage if you or your spouse paid Medicare taxes while working. Other Costs: To give you an idea of what to expect, in 2012 the Medicare Part A annual deductible is $1,156. And, after meeting this deductible, you would pay nothing more for up to 60 days in the hospital (semi-private room and board, general nursing and miscellaneous services and supplies). Longer stays may require a daily coinsurance. Medicare Part B is medical care coverage that helps cover the cost for: Doctors services Hospital outpatient care Some home health care services Some physical and occupational therapy What are your costs for Medicare Part B? Premium: Your monthly premium is on a sliding scale based on your annual income. Most people will pay the standard monthly premium, which in 2012 is $99.90 per month. Other Costs: To give you an idea of what to expect, in 2012 the Medicare Part B standard annual deductible is $140. And, for most covered services, you would pay 20% of the Medicare-approved amount. 2

5 Medicare Part D Medicare Supplement Medicare Part D is for prescription drug coverage. Medicare Part D is only offered by private insurers approved by the Centers for Medicare & Medicaid Services (CMS). Part D plans, when sold as stand-alone plans, may be combined with Medicare Supplement plans. Part D plans can: Help pay for brand-name and generic prescribed drugs. Provide access to retail drugstores as well as mail-order options. What are your costs for Medicare Part D? Premiums: Monthly premiums will vary by plan, based on the coverage you choose. -- Most people will pay only the standard monthly Part D premium. However, if your annual income is above a certain limit, you will pay an income-related monthly adjustment amount in addition to your premium. If it applies, this amount will be billed by Medicare and deducted from your monthly Social Security check. Other Costs: Deductibles, copays and coinsurance may apply. Medicare Supplement plans pay expenses that are not fully covered by Original Medicare, such as: Medicare Part A or Part B deductibles Medicare Part A or Part B coinsurance or copays Skilled Nursing Facility care coinsurance Medicare Part B Excess charges Foreign Travel Emergencies What are your costs for Medicare Supplement plans? Monthly premiums will vary by plan, based on the insurer and coverage you select. Deductibles, copays and coinsurance may apply. 3

6 Bridge the gaps in Original Medicare To help bridge the gaps in Original Medicare, you can buy a Medicare Supplement plan. You can also purchase a Medicare Part D plan to provide prescription drug coverage. Below are simple overviews of how both options work with Original Medicare. Original Medicare + Medicare Supplement + + Coverage for basic medical and hospital expenses, plus coverage for expenses such as your share of the deductibles and coinsurance that Original Medicare does not fully cover. Original Medicare + Medicare Supplement + Prescription Drug Coverage Coverage for basic medical and hospital expenses, plus coverage for expenses such as your share of the deductibles and coinsurance that Original Medicare does not fully cover, as well as prescription drugs. Questions about Medicare? For answers call: MEDICARE ( ); TTY/TDD line , 24 hours a day, seven days a week. 4

7 When can you enroll? When it comes to enrolling, timing matters! Getting Medicare benefits is not always as simple as just turning 65. There are actions most people must take during preset enrollment periods. For example, if you are like most people, you must actively enroll when you are first eligible to receive Original Medicare and Part D to avoid possible coverage delays and premium penalties that can last for as long as you have Medicare. Initial enrollment period for Original Medicare and Part D 7 months surrounding your Medicare eligibility: This is the 3 months before you turn 65, the month when you turn 65, and the 3 months after. st nd rd st nd rd 3 months before 3 months after Special Enrollment Period (SEP) for Original Medicare and Part D A common SEP is for those covered under their employer s health plans who retire after 65. For more details on this and other SEPs, visit Medicare Supplement enrollment It is very important to note that there are different open enrollment periods for Medicare Supplement plans and Original Medicare. For Medicare Supplement, you are eligible to enroll: 1. When you are 65 or older; or 2. You are under 65 and eligible for Medicare due to a disability; and 3. After you enroll in Medicare Parts A and B. You will want to enroll in a Medicare Supplement plan within your initial eligibility period so you can enjoy guaranteed acceptance into your choice of plan, without needing to answer questions about your health or qualify medically. 5

8 Welcome... to the Medicare Supplement plans that offer the flexibility and security you have been looking for. 6

9 When Original Medicare is not enough -- it pays to have a Blue Cross and Blue Shield of Georgia Medicare Supplement plan Since you re thinking about keeping Original Medicare, you may want to add a plan that will help fill in the coverage gaps. Why? Original Medicare does not pay 100% of your hospital (Part A) and medical (Part B) care. That means you ll have to pay the difference. A Medicare Supplement plan can potentially save you thousands of dollars. Depending on the plan you choose, your Parts A and B Medicare-eligible covered expenses may be covered up to 100%. Choose a Medicare Supplement plan that provides coverage for: Medicare Part A or Part B deductibles Medicare Part A or Part B coinsurance or copays Skilled Nursing Facility Medicare Part B Excess charges Foreign Travel Emergencies A recent survey shows that nearly 90% of Medicare Supplement policyholders surveyed said that they would recommend Medicare Supplement plans to a friend or relative when they enroll in Medicare. 1 1 American Viewpoint, 2009 Medigap satisfaction survey (Accessed June 2011): content/pressrelease.aspx?docid=

10 Go ahead, take a look... Benefits Amount Medicare Pays 1 Part A: Hospitalization First 60 days (Part A Deductible) 61st 90th day 91st day and after All but $1,156 All but $289 a day All but $578 a day Skilled Nursing Facility First 20 days 21st 100th day 101st day and after All approved amounts All but $ a day Part B: Medical Expenses Medicare Part B Deductible All but $140 Medicare Part B Excess Charges Other Benefits Foreign Travel Emergency See Outline of Coverage for more details. 1 The amount Medicare pays of the Medicare-approved amount. Medicare deductibles, premiums and coinsurance rates are effective January 1, 2012, based on the Consumer Price Index. 8

11 and see which plan works for you. Plan A Amount Medicare Supplement Plan Pays High Deductible Plan F Plan G Plan N Plan F 2 3 $1,156 $1,156 $1,156 $1,156 $289 a day $289 a day $289 a day $289 a day $289 a day $578 a day $578 a day $578 a day $578 a day $578 a day Up to $ a day Up to $ a day Up to $ a day Up to $ a day $140 $ % 100% 100% 80%* 80%* 80%* 80%* 2 You must pay for Medicare-covered costs up to the deductible amount ($2,070 in 2012) before this Medicare Supplement policy pays anything. 3 Pays 100% of Part B coinsurance, except for copay up to $20 for office visits and up to $50 copay for emergency room visits that do not result in an inpatient admission. * 80% to a lifetime maximum benefit of $50,000, after you pay the annual deductible of $250. 9

12 Compare and save As you can see from the chart on the previous page, different Medicare Supplement plans cover different types of medical costs. Let s take a closer look at how a Medicare Supplement plan can help cover gaps. Following are two examples showing what your out-of-pocket cost would be with Original Medicare only and with a Medicare Supplement plan. Your costs without a Medicare Supplement plan Let s say you are 66 years old and were hospitalized due to a chronic illness. You have Original Medicare, but you do not have a Medicare Supplement plan. You had a major surgical procedure and spent 15 days in the hospital, followed by 22 days in a Skilled Nursing Facility. Part A deductible for 15 days of hospitalization $1,156 Part A coinsurance for 22 days in Skilled Nursing Facility ($144.50/day) $289 Part B deductible $140 Part B coinsurance for surgical procedure visits $2,400 (20% of Medicare-approved amount $12,000) Part B Excess charge for surgeon and anesthesiologist charges $600 (15% of Medicare-approved amount) Your total cost sharing $4,585 Your costs with a Plan F Medicare Supplement plan Using the same situation and figures as above, only this time you have Original Medicare plus a Medicare Supplement plan (for example Plan F ), and you ve already satisfied your Part B deductible for the year. Part A deductible for 15 days of hospitalization Part A coinsurance for 22 days in Skilled Nursing Facility Part B deductible Part B coinsurance for surgical procedure visits Part B Excess charge for surgeon and anesthesiologist charges Your out-of-pocket cost 10

13 Enroll now! Please go to the Outline of Coverage section to learn more about our Medicare Supplement plans. However, we know you still may have plenty of questions, and we want you to be confident in the choice you make before you buy a Medicare Supplement plan with Blue Cross and Blue Shield of Georgia. So if you would like to talk more, please feel free to call your local licensed sales agent or one of our licensed sales agents at ; (TTY/TDD: 711), 8 a.m. to 8 p.m., seven days a week. Convenient payment options You choose how you re going to pay your premiums. You have the option to pay monthly, quarterly or annually. See the Outline of Coverage for plan costs and details on discounts. You can save money if you pay your monthly premiums through automatic bank draft or pay your premiums once a year. Save even more money when more than one member in the same household (for instance, you and your spouse) enroll in a Medicare Supplement plan with us. For additional information, you can also visit us online at The purpose of this communication is the solicitation of insurance. Contact will be made by an insurance agent or insurance company. This brochure is intended to be a brief summary of coverage and is not intended to be a legal contract. The entire provisions of benefits and exclusions are contained in the Policy. In the event of a conflict between the Policy and this description, the terms of the Policy will prevail. Medicare Supplement Plans are also available to persons eligible for Medicare because of disability. Blue Cross and Blue Shield of Georgia is not connected with or endorsed by the U.S. Government or the federal Medicare program. Blue Cross and Blue Shield of Georgia, Inc., is an independent licensee of the Blue Cross and Blue Shield Association. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association GASBGENAREA1