Medicare Supplement Plan N is quickly becoming the third most popular Medigap plan – especially in states that have banned balance billing by health care providers, which include: Massachusetts, Pennsylvania, Connecticut, Minnesota, Rhode Island, Vermont, New York and Ohio. Plan N is becoming the plan of choice for seniors looking to extract as much savings as possible from the monthly premium of their Medigap plan while still having the freedom to visit any medical hospital or provider that takes Medicare patients.
What does Plan N cover?
Medigap Plan N covers the usual Part A deductible and coinsurance in addition to the Skilled Nursing Facility coinsurance that a Plan F covers, but when it comes to Part B expenses, Plan N doesn’t cover quite as many expenses as F. Plan N doesn’t cover the annual Part B deductible, which is $185 (in 2019). Plan N doesn’t cover excess charges, either, which providers may charge outside of the states listed above that have banned balance billing which can add up to an additional 14.5% for their medical care. Plan N also makes seniors responsible for copays of $20 for visiting the doctor and $50 for the ER.
How much does a Plan N cost?
The cost of a Medicare Supplement Plan N starts around $90 per month range, for a 65-year-old. A 70-year-old can expect to pay at least $120 per month. An 80-year-old will pay $180 or more per month, and a 90-year-old will pay around $210 per month or more. Seniors who pay annually can get a discount. If you are applying together with a domestic partner or spouse, you can possibly get a Household Discount – ask your broker for more details.
How does Plan N compare to Plan F?
If you compare the cost in terms of monthly premium, Plan N will save a senior approximately $40 a month, or almost $500 a year, compared to Plan F. Even if the senior paid the Part B deductible of $185, they would have to go to the doctor’s office more than 15 times a year to wipe away any potential savings. Of course, if you’re not in one of the 8 states specified above or you like to travel out of state periodically (snow birds), you also have to watch out for “excess charges” on a Plan N, whereas those charges would be covered by Plan F or G.
