If you’re considering Medicare Supplement plans, also known as Medigap, you may have already learned that there are several types of policies to choose from. Medicare Supplement plans are sold by private insurance companies to Medicare beneficiaries who are eligible. They can supplement your Medicare benefits by covering copayments, coinsurance, some deductibles, and other gaps left by Original Medicare Part A and Part B insurance.
The ten standardized Medigap plans available in most states and counties in the United States, are plans A, B, C, D, F, G, K, L, M, and N. However, since January 1, 2020, new Medicare enrollees can no longer purchase Plan C or F because these two plans cover the Medicare Part B deductible, and that is no longer a coverage option for Medicare Supplement plans.
One of the most popular Medigap plans is Plan N. Like the other Medigap plans, Plan N helps enrollees fill coverage gaps in Medicare benefits so they can meet their health care expenses more easily. If you’ve been thinking about purchasing Medicare Supplement insurance, here’s a closer look at what Plan N has to offer.
What does Medicare Supplement Plan N cover?
All Medicare Supplement plans are standardized according to their letter, so they cover the same benefits no matter what insurance company carries them.
Medicare Supplement Plan N includes the following benefits:
- 100 percent of your Medicare Part B coinsurance costs except for a $20.00 copayment for health care provider office visits, and up to $50.00 for emergency room visits.
- 100 percent of your hospital coinsurance and hospital costs for stays up to 365 days after Original Medicare Part A benefits run out.
- 100 percent of the copayment or coinsurance for hospice care.
- 100 percent of your Medicare Part A deductible. In 2022, the Part A deductible is $1556.00 per benefit period.
- 100 percent of the Part B preventive care coinsurance cost.
- The first three pints of blood you may need for a medical procedure are covered 100 percent.
- 100 percent of the coinsurance for care at a skilled nursing facility.
- Emergency health care during foreign travel, typically up to 80 percent of the final approved cost.
Medicare Supplement Plan N doesn’t cover the Original Medicare Part B deductible or excess charges. If you purchase Medigap Plan N, you are responsible for paying these costs out-of-pocket.
How much does Medigap Plan N cost?
If you supplement your Medicare benefits with Medigap Plan N, you are still responsible for paying your Medicare Part B monthly premium. The amount you pay for your Medigap Plan N monthly premium depends on what insurance provider you purchase it from and how the insurance company determines its monthly premium. In most cases, Medigap providers use one of the following three methods:
- Attained-age rating, based on the age you are when you enroll. Your premium goes up as you get older.
- Issue or Entry-age rating, based on your age when you enroll. Premiums don’t increase as you age, but your premium is typically higher at the start. Premiums can increase due to inflation.
- Community rating, all enrollees are charged the same monthly premium regardless of age or gender.