Medicare Supplement Plan N has been popular since it was first introduced in 2010. Also called Medigap Plan N, this standardized supplement option was created for consumers who like the idea of paying a lower premium in exchange for taking on a small annual deductible and some copays.
Here’s a graph that demonstrates what Medicare Supplement Plan N covers, and what is left for you to cover:
Medigap Plan N: New Plan with Big Savings
Plan N is relatively new to the Medicare supplement world, being first introduced in June of 2010. It offers identical basic benefits as the more popular Plan F, but the policyholder agrees to pay the small annual outpatient deductible ($147 in 2014) as well as co-payments up to $20 for doctor appointments and up to $50 for emergency room visits. People with Medigap N also pay excess charges for those medical providers that charge the allowed 15% surcharge above what Medicare pays the provider. Click here for a description: What is an excess charge?
Plan N – Let’s look at an example
Mrs. Smith says she visits the doctor only once or twice a year, so she feels that a full coverage Plan F isn’t really necessary due to her low usage. She purchases a Plan N and enjoys premiums that are about 30% less in her state than Medigap F would cost her. If she goes to the hospital, her Part A deductible is still fully covered by her policy.
For outpatient care, Mrs. Smith pays the annual Part B deductible of $147 in 2014 upon her first doctor or lab visit of the year. She then pays a co-payment of up to $20 when she sees her physicians during the rest of the year, and she may pay an excess charge if her doctor is not a participating Medicare doctor. Let’s look at how these expenses might affect her.
Let’s say Mrs. Smith visits her podiatrist in the middle of the year, after her deductible has already been met. Medicare’s assigned rate for a visit to this foot specialist is $100. If the doctor does not accept assigned rates, he can balance bill Mrs. Smith for up to 15% beyond the approved rate for this visit, or a maximum of $15 in this case.
Mrs. Smith owes her $20 copay, and her supplement will pay the remainder of the approved charges.
If you find that Plan N hard to understand because of the excess charges and copays, but you still like the idea of lower premiums, then you might check out Plan G where excess charges are covered by your Medigap plan, and your cost-sharing is limited to the Part B deductible.
Medigap Plan N is offered by a wide variety of carriers
Though Medicare Plan N is one of the 10 federally standardized Medicare supplement options, each insurance company can choose whether to sell it or not unless a particular state law requires them to. Fortunately, this policy is fairly easy to find since many carriers offer it, but checking each insurance company in your state for rates can take an extensive amount of time.
Boomer Benefits sells Medicare supplement N policies for numerous different insurance companies. Need quotes? Call us today or you can use the link below to request quotes via email.