Medicare Plan N can help a person pay any uncovered costs of traditional Medicare. These plans are also known as Medigap plans.
A person with traditional Medicare, which comprises parts A and B, may also choose to buy Medicare Plan N.
Like all other Medigap plans, Plan N helps a person pay the uncovered costs of traditional Medicare by filling some of the gaps created by deductibles, copayments, and coinsurances.
Although Plan N does not pay the Part B deductible of $198, it does pay the Part A deductible, along with an array of other benefits.
This article will examine the coverage, costs, and other factors associated with Medicare Plan N. It will also compare Plan N with Medigap plans F and G.
We may use a few terms in this piece that can be helpful to understand when selecting the best insurance plan:
- Deductible: This is an annual amount that a person must spend out of pocket within a certain time period before an insurer starts to fund their treatments.
- Coinsurance: This is a percentage of a treatment cost that a person will need to self-fund. For Medicare Part B, this comes to 20%.
- Copayment: This is a fixed dollar amount that an insured person pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
Because traditional Medicare does not cover all healthcare costs, many people choose to buy a Medigap plan to reduce their out-of-pocket expenses.
Private insurance companies offer these supplemental policies. The plans are A, B, C, D, F, G, K, L, M, and N, and these options vary in coverage.
Plan N includes the following:
- 100% of the Part A coinsurance
- hospital charges up to an additional year after a person uses up their Medicare benefits
- 100% of hospice care copayments and coinsurance
- 100% of the Part A deductible
- the first 3 pints of blood a person may need
- 100% of the coinsurance for care a person receives at a skilled nursing facility
- 80% of emergency medical costs incurred in a foreign country, up to the plan limits
- 100% of the Part B coinsurance, with two exceptions
Plan N does not provide benefits for:
- the Part B deductible
- Part B excess charges
- dental, vision, and hearing costs
- prescription drugs
It is important to point out that the Plan N details above do not apply to people living in Massachusetts, Minnesota, or Wisconsin. These states standardize Medigap policies differently.
The $144.60 monthly premium for Medicare Part B will still be applicable, in addition to the monthly Plan N premium.
Although the coverage that Plan N offers is standard, the prices can vary widely from one area of the United States to another. Costs can also vary between the companies that provide the plans.
A person will also need to pay the Part B yearly deductible, which is $198 in 2020.
People can use this tool to find the cost of Plan N premiums in their area. After a person types in a zip code, the website will show them all of the Medigap plans available and all the companies that administer them.
Factors that influence Plan N costs
The following factors can affect the premiums an insurance company sets for a Plan N policy:
- Issue age: This means that the price depends on the age of an individual at the time they buy a plan. Although the price may increase with inflation, it will not rise as someone gets older.
- Attained age: This indicates that the price depends on a person’s current age. As an individual gets older, the price of the plan will increase.
- Discounts: Some companies offer discounts based on a variety of factors that may affect health, such as quitting smoking. Others reduce their rates if a person chooses to pay their premiums electronically, or if they have more than one policy.
A person considering Plan N may wonder how it compares with plans F and G.
Plan F is the most comprehensive Medigap plan, but it is no longer available to new enrollees who became eligible for Medicare before January 1, 2020.
If an individual is looking for a plan with extensive coverage, Plan G is the second most comprehensive option.
Plan N vs. Plan F
Plan N differs from Plan F in three main ways. The table below provides more details.
| Plan N | Plan F | |
| Part B deductible | Not covered | Fully covered |
| Part B excess charges | Not covered | Fully covered |
| Part B copayments | Partially covered | Fully covered |
Plan N vs. Plan G
A comparison of Plan N with Plan G shows that they differ in two main ways. The table below provides more details.
| Plan N | Plan G | |
| Part B excess charges | Not covered | Fully covered |
| Part B copayments | Partially covered | Fully covered |
If a person wishes to compare all of the Medigap plans at a glance, a helpful chart is available.
Medicare Plan N is a supplement insurance plan that helps a person pay for healthcare costs that traditional Medicare does not cover.
Two of its major coverage areas include 100% of the Part A deductible and 100% of the Part B coinsurance (except for certain copayments).
Monthly costs include the Part B premium of $144.60 plus the premium of Plan N. Prices of Plan N vary by state and insurance company.
People interested in Plan N may wish to compare its coverage and cost with other Medigap plans. They can then compare the prices of the companies that offer the plan.