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Medicare Supplement Insurance: Plan N

A Medigap plan, or Medicare Supplement, pays after Medicare to help cover your deductibles, copays, and coinsurance that you would otherwise be responsible for.

Medigap plans do not replace your Medicare Part B.

You must be enrolled in both Part A and Part B first, then you are eligible to enroll in a Medicare Supplement (Medigap) Plan. 

Medicare Supplements can only pay on Medicare-approved charges. 

Similar to the Plan G, Plan N will not cover the annual Part B medical deductible ($185 for 2019). 

Under Medigap Plan N, 100% of the Part B approved coinsurance costs are covered after the annual deductible is met, except up to a $20 copayment for office visits and up to $50 for emergency room visits.

Plan N Medigap does offer “1st dollar” coverage on hospital in-patient care like Plans F& G, meaning that the Plan N will pay the Medicare Part A deductible of $1346 in 2019 for an in-patient hospital benefit period.

Medicare Insurance

In terms of premium pricing, the Plan N usually offers exceptional value relative to the fact that it provides 100% coverage from day 1 on expensive in-patient stays, and other than the annual deductible and an occasional office or ER visit co-pay, it provides 100% coverage on approved medical claims.

Despite the $185 medical deductible and co-pays under specific circumstances in the Plan N, the difference in premiums between the N and the F Plans can sometimes be more than $50 monthly, depending on demographics and client health specifics.

In other words, the savings in premiums between the N and F plans over the course of a year usually exceeds the cost of the deductible and co-pays during that same year, allowing the Plan N policy holder to recoup out of pocket costs and still save on their monthly plan premium.

Remember – Medicare Supplements (Medigaps) provide secondary health coverage, but neither Medicare nor supplements provide prescription drug or Part D coverage. 

You would need to purchase a Prescription Drug Plan (PDP) for Part D coverage from an insurance company that sells PDP plans in your state, in addition to purchasing a Medicare supplement, if you desire to have Medicare Prescription Drug (Part D) coverage as well as secondary health coverage.