Medigap Plan N is a lower-cost alternative that may be a fit in some situations.
Medigap Plan N can be a great Medicare Supplement option for those in good health or fixed incomes. Plan N is a relatively new plan – it became one of the standardized plans with the 2010 re-work of the Medigap plans. Since that time, its market share has grown each year and now approximately 12% of people who have a Medigap plan have this plan.
Overall, it is one of the lower levels of coverage when it comes to Medigap plans, but the premiums correspond with it being a lower level of coverage. In other words, it is also one of the least expensive plans.
What Does Medigap Plan N Cover?
So, what does Medigap Plan N cover? Here is the Medigap standardized plans chart. This chart shows what the different plans cover, including Plan N. As you can see, Medigap Plan N provides full coverage for the 20% coinsurance under Medicare Part A (hospital/inpatient). Under this plan, you would have no out of pocket costs for Medicare-covered expenses at the hospital.
The differences in Medigap Plan N and other more comprehensive plans, such as Medigap Plan F, shows up when you look at the plans’ coverage of Part B expenses. Under Plan N, there is no coverage for the Medicare Part B deductible. For 2014, this deductible is $147/year. Then, after the deductible, you also have some co-pays on Medigap Plan N. These co-pays are $20 at the doctor’s office (primary or specialist) and $50 at the Emergency Room. Lastly, the third difference is that Medigap Plan N does not cover the Medicare Part B Excess Charges. These charges are relatively rare, but they can occur if a doctor does not accept the Medicare payment schedule (also referred to as Medicare “assignment”).
Is This Plan Right for You?
Plan N rates vary widely, depending on which state you are in and what your age is. But overall, they are typically about 15-25% less than Plan F rates. They can be as low as $60-70/month (for a 65-year-old female in a state with lower Medigap rates).
For someone who is in good health, with relatively few medical problems or need for frequent doctor visits, this plan can be a good alternative. There are a couple of considerations, though, that you should be aware of before electing to go this route. First of all, the $20 co-pays have no maximum amount of occurrences. In other words, you would pay the co-pay each time you went to a doctor or specialist. If you have a surgery and have recurring rehabilitation appointments (weekly or even 2x/week), this can add up. Also, keep in mind that, in most situations, you have to qualify medically to get a supplement plan or change plans. So if you elect a Medigap Plan N initially, and then later wish to change plans, you would have to answer medical questions and “qualify” in order to do so.
If you have questions about Medigap Plan N, or any of the other plans, or if you just want to get a comparison of the plans available for your age and zip code, you can contact us here or call us at 877.506.3378.