Medigap Plan N
Medigap Plan N is a highly sought-after Medicare supplement plan due to its affordability and excellent value. It is an ideal option for those who want comprehensive coverage but are willing to pay less in monthly premiums compared to Plans F and G. However, Plan N requires beneficiaries to pay deductible expenses and some copays.
Medigap Plan N Coverage Details
Medigap Plan N is designed to cover the gaps in Original Medicare, but it doesn’t offer 100% coverage. However, for a lower monthly premium, it provides excellent value. Plan N pays for the Part A inpatient deductible, copays, and coinsurance, with the exception of a $50 copay. Plan N members will also pay a $20 copay for doctor’s office visits and the Part B deductible. If you live in a state that allows Part B excess charges, you may have to pay for those out-of-pocket as well, but most doctors accept Medicare assignment and do not charge excess fees. Finally, Plan N provides coverage for foreign travel emergencies.
Medigap Plan N Covers:
- Part A coinsurance and up to an additional 365 days of hospital costs after Medicare benefits are exhausted
- Part B coinsurance/copayment, except for a $20 copayment for some office visits and a $50 copayment for emergency services unrelated to inpatient admission
- Blood (3 pints)
- Part A hospice coinsurance/copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- 80% of foreign travel exchange
- No out-of-pocket limit
Medigap Plan N Premiums
Premiums for Medigap Plan N will vary depending on several factors, including the state of residence, the insurance carrier, and individual characteristics such as age, gender, and tobacco use. On average, the monthly cost for Plan N falls between $120 and $180. Typically, premiums for Plan N are higher in states with a higher cost of living.
Medigap Plan N Copays
To enjoy lower premiums, individuals enrolled in Plan N are required to pay $20 copays for visits to a doctor’s office and $50 copays for emergency room visits. However, the $50 emergency room copay is waived if the member is admitted as an inpatient. It’s important to note that there are no copays for visits to Urgent Care centers, which may be a more convenient and affordable option for minor treatment. It’s worth mentioning that copays do not count towards the Part B deductible.
Medigap Plan N Rate Increases
Medigap plan premiums can increase each year, and the specific increase will depend on the pricing method used by the insurance carrier. Typically, premiums increase with age. Over the past five years, Plan N rate increases have averaged between 2% and 4%. When selecting a Medigap plan, it’s important to review the carrier’s rate increase history. Even if a carrier is currently offering lower rates, if they have a history of frequent and significant rate hikes, they may end up costing more in the long run. Our agents can provide this information free of charge as part of our service.
Comparing Plan N & Plan F
Plan F provides the most extensive coverage for Medicare beneficiaries as it covers 100% of out-of-pocket costs, with members only paying for the plan’s premium. However, not all beneficiaries are eligible to enroll in Plan F, while all are eligible for Plan N, which offers slightly less coverage but may have significantly lower premiums.
Enrolling in Medigap Plan N
Individuals who want to enroll in Plan N must have already enrolled in Original Medicare – Parts A and B. It is recommended to enroll during the open enrollment period, which starts on the effective date of Part B. During this period, beneficiaries have six months to enroll in a plan with guaranteed issue rights, meaning they cannot be denied coverage based on their health history. After this timeframe, enrollment may be declined based on an individual’s medical history.
