When looking at the Medicare Supplement plan options available, it can be extremely overwhelming.
When you review Medicare’s chart of the Medigap plans available, you’re faced with 11 different options! How are you supposed to know which option is going to be the best fit for you? Luckily, we can narrow that chart down to just a few options that will provide you with fantastic coverage, and one of those options is Medicare Supplement Plan N.
What is Medicare Supplement Plan N?
Medicare Supplement Plan N, also known as Medigap Plan N, is designed to help fill in the gaps in coverage left by your Medicare Part A and Medicare Part B (Original Medicare). Original Medicare leaves Medicare enrollees with many out-of-pocket costs, including deductibles and coinsurances. Medigap Plan N is designed to limit many costs, but not all of these out-of-pocket expenses.
Like all Medicare Supplement plans, Plan N is offered by private insurance companies to cover things the Original Medicare Parts A and B do not. Medigap Plan N fills most of the gaps in coverage, with the exception of the Part B deductible and a copay of up to $20 for office visits and $50 for ER visits. Plan N also does not cover excess charges if your provider does not accept Medicare Assignment unless you live in a state where excess charges are not permitted.
Medicare Plan G offers slightly higher benefits than Medicare Plan N, while Plan N will have lower premiums. Both do not cover the Medicare Part B deductible, and Plan N also has copays for office visits ($20) and ER visits ($50). Oftentimes, if the monthly premium difference between Plan G and Plan is more than $25, Plan N is a more cost-efficient option.
Medigap Plan N can be an excellent choice to cover the “gaps” in original Medicare. It has low out-of-pocket expenses and an affordable premium.
Guaranteed issue plan choices changed in 2020. Before 2020, the choices were A, B, C, F, K, or L, with Plan F being the likely choice. After 1/1/20, the choices are D, G, or HDG, with Plan G being the likely choice.
What Are Medigap Plans?
When you turn 65, you can voluntarily enroll in Medicare. Medicare is a federally facilitated health insurance program that you have paid into for most of your working life. Original Medicare, also known as Medicare Part A and Medicare Part B, will only cover a portion of your healthcare. Still, you will be responsible for some of your remaining medical expenses. Your cost-share under Original Medicare includes, but isn’t limited to, deductibles, coinsurances/copayments, and excess charges. These cost-shares can be considered your “gaps in coverage.”
In our retirement years, the last thing we want to do is worry about unexpected medical costs piling up. Luckily, there are plans available that can help to fill in these gaps and give Medicare enrollees peace of mind. Plans designed specifically to work with Original Medicare are called Medicare Supplement plans, or Medigap Plans.
Medicare Supplement Plans
Fortunately for you, the government has standardized these Medigap plans. This will mean that the only difference between each lettered plan will be how much you monthly for the premium based on the insurance company you enroll with. Essentially, the benefits offered under a Plan N, regardless of insurance carrier, must be identical. CMS mandates each plan’s benefits, and a Plan N cannot offer more benefits or fewer benefits than another Plan N just because the insurance carrier is different.
If you are currently covered under Medicare Part A and Medicare Part B, you’re eligible to purchase a Medicare Supplement plan. It is extremely beneficial to apply for a Medigap Plan to begin at the same time as your Medicare Part B, so you are not subjected to limitless out-of-pocket costs. We want all of our insurance coverage to be streamlined.
When it comes to your options for choosing a Medigap plan, there are going to be twelve to consider. They will be labeled as follows: A, B, C, D, F, high-deductible F, G, high-deductible G, K, L, M, and N. In case you were wondering what happened to plans E, H, I, and J, these plans won’t be available to purchase as a supplement to your Medicare. Also, if you turned 65 after January 1st, 2020, you are not eligible to enroll in Plan F, Plan C, or Plan F high-deductible.
What do I Need to Know About Medicare Supplement Plan N?
As we mentioned previously, Medicare Supplement plans are designed to fill the gaps left behind by Original Medicare: Medicare Part A and Medicare Part B. Medigap Plan N helps limit costs by covering many of these aspects, with minimal out-of-pocket for your cost-share.