Medicare Supplement Plan N: Is It Right For You?

Sorting through Medigap plans can be a challenge if you shop on your own. There are many choices available, but how do you know which one is right for your needs? Medicare Supplement Plan N can be a good choice for those looking for near-comprehensive coverage. Below, we discuss Medicare Supplement Plan N’s main features and benefits.

A Brief Review of Medicare Supplement Plans

When you turn 65, you’re eligible to enroll in Medicare, a federally facilitated health insurance program. Original Medicare (Parts A and B) will cover some, but not all, of your medical expenses. The portion not covered is often referred to as a “gap.” Medicare Supplement plans, also called Medigap plans, are policies sold by private insurance companies to help pay for the expenses Medicare does not cover.

About Medicare Supplement Plans

Medigap plans are standardized by the federal government. This means that plans of the same letter offer the same benefits, no matter who you buy it from. But keep in mind that insurance companies are allowed to offer additional benefits, so compare plans carefully before you purchase a policy. You are eligible to purchase a Medicare supplement insurance plan if you are 65 years old or older and enrolled in Medicare Part B. If you are under 65 and disabled, you will likely be limited as to which Medigap plan you can purchase.

There are 10 Medigap plan options in total. But we are going to focus on Medicare Supplement Plan N.

What Is Medicare Supplement Plan N?

What Does Medicare Supplement Plan N Cover?

Medigap Plan N has coverage for four basic areas:

1. Hospitalization: pays Part A coinsurance and provides coverage for 365 additional days after Medicare benefits end.
2. Medical Expenses: pays Part B coinsurance (excluding copays for office visits and ER) and 20% of Medicare-approved expenses or copayments for hospital outpatient services.
3. Blood: pays the first three pints of blood annually. Original Medicare pays for any pints beyond 3.
4. Hospice Care: pays Part A coinsurance.

Additionally, Medicare Supplement Plan N pays for skilled nursing facility care and the Medicare Part A deductible for hospitalization.

What Does Medicare Supplement Plan N Not Cover?

Medigap Plan N does not cover the Medicare Part B deductible or excess charges, which are the difference in cost between what a health provider charges for a medical service and the Medicare-approved amount. Medicare Plan N will not cover the copay or coinsurance for doctor’s office and emergency room visits.

How Much Does Medicare Supplement Plan N Cost?

The premiums associated with Medicare Supplement plans differ by location and insurance company. As a general reference, in 2021, a non-smoking 65-year-old woman living in Florida’s 32162 ZIP code would pay between $124 and $182 for Medicare Supplement Plan N monthly premiums.¹

But how do companies set these prices? They use one of three price rating systems to set premiums:

1. Community-rated: everyone with the policy pays the same price regardless of age. Pricing can still change based on inflation but cannot increase due to your age.
2. Issue-age-rated: the premium is based on the age you are at the time of purchase. Therefore, it costs less for people who buy at a younger age. The price cannot increase after the issue date due to age.
3. Attained-age-rated: the premium starts low and increases as you age.

There can be a wide variance in cost. Differences may exist based on whether or not the insurance company selling the policy offers discounts or uses medical underwriting.

Pro Tip: When shopping for a Medicare Supplement policy, always compare apples to apples. You want to be make certain you are comparing a Medigap Plan N from one company to a Medicare Plan N from another company. You don’t want to compare Plan N at one company to Plan B at another because you won’t get a clear comparison between the prices and benefits.

Want an easy way to shop for Medicare Plan N prices? Start comparing Medigap plans with HealthMarkets!

Enrollment for Medigap Plan N

Enrollment begins the first day of the month you turn 65 and are covered under Medicare Part B and ends six months after your birthday month. Applying for benefits during this time is the most beneficial, as insurance companies are not permitted to use medical underwriting. That means you could get the lowest prices available.

Applying for benefits outside of the six-month time window could mean higher premiums or a denial of coverage due to your health.

How Does Medicare Supplement Plan N Compare to Other Medigap Plans?

Medicare Supplement Plan N provides more coverage than Plans K and L. For example, it covers 100% of the Medicare Part B coinsurance and copayments, whereas K and L only pay 50% and 75%, respectively. The same is true with the Medicare Part A deductible.

Additionally, the only out-of-pocket expenses beyond the monthly premium are a $20 copay for office visits and a $50 copay for a trip to the ER.

The chart below will help you make comparisons.

No Networks

With Medigap plans, there is no insurance network limiting you. Medicare Plan N covers you no matter where you go throughout the country – as long as your provider accepts Medicare.