August 15th 2023
By Ari Parker
Medicare Supplement (aka Medigap) Plan N pairs with Original Medicare to significantly reduce your out-of-pocket costs. Learn about Plan N coverage and costs.
By Ari Parker
Medicare Supplement Plan N, also known as Medigap Plan N is a type of Medicare Supplement plan. Medicare Supplement plans help Medicare beneficiaries cover the 20% of costs that Original Medicare doesn’t, limiting out-of-pocket expenses. There are ten types of Medicare Supplement plans. Plan G is generally considered the most comprehensive, and often “best” Medigap plan, but Medicare Plan N is another great Medigap option, with only a couple of differences.
In this article, we’ll first explain the ins and outs of Medicare Supplement plans. If you’re already familiar with how Medicare Supplement plans work, skip to the second half of this article to learn more about Plan N!
Medicare Supplement plans, which are commonly referred to as Medigap plans, help Medicare beneficiaries cover the 20% of costs not covered by Original Medicare (Parts A & B). While Medicare Advantage plans replace Original Medicare, Medigap plans work alongside them to provide comprehensive coverage.
In most states, there are ten types of Medicare Supplement plans labeled by letters A through N. These plans are standardized, meaning every Plan N has identical coverage. In three states (Massachusetts, Minnesota, and Wisconsin) there are only three Medigap plan types: Core, Supplement 1, and Supplement 1A.
As mentioned before, Original Medicare doesn’t cover 20% of healthcare costs. If you need regular or expensive treatments, that 20% can add up and cost you thousands. That’s why many Medicare beneficiaries choose to add a Medicare Supplement plan to their Medicare coverage. These plans significantly reduce out-of-pocket costs. With Plan G and Plan N, out-of-pocket costs are almost completely eliminated! In addition to lower out-of-pocket costs, Medigap plans have some key advantages, especially when compared to Medicare Advantage.
Medicare Supplement insurance plans are standardized. This means that a Plan N from Cigna will be identical to a Plan N from Humana, even if one has a higher premium. As a result, you don’t need to read through benefit summaries for each plan to find differences.
One of the ways Medicare Advantage plans are able to offer low or no-premium plans is because they limit you to provider networks. With a Medicare Supplement plan, just like with Original Medicare, you can see any provider who accepts Medicare. With 90% of doctors nationwide accepting Medicare, finding a doctor in your home state or on vacation is easy.
Medicare Advantage plans are notorious for requiring prior authorization for covered services. And denials are all too common. Medicare Supplement plans don’t require prior authorizations, making sure you get quick access to the care you need.
Medicare beneficiaries who are enrolled in Medicare Part A and Medicare Part B and are not enrolled in a Medicare Advantage plan are eligible to enroll in Medigap plans. When you enroll in a Medigap plan matters, though. Even if you’re eligible, if you enroll outside of a handful of guaranteed issue periods, insurance companies can ask you questions about your health history, and your application may be denied.
There are ten types of Medicare Supplement plans, each covering a different set of out-of-pocket costs. Consult this chart to see the differences.
Medigap Plan G provides the most comprehensive coverage, and Plan N is a close second. Learn more about why in the next section!
If you want help understanding the differences, our licensed Medicare Advisors are here to help! Schedule a free consultation to ask questions about Medicare and Medigap, or give us a call at (855) 900-2427 to receive personalized advice.
About 10% of Medicare Supplement enrollees are enrolled in Plan N (compared to 32% on Plan G). Plan F is the other popular Medicare Supplement Plan, but it is unavailable to those who turn 65 after January 1, 2020.
Important note: Massachusetts, Minnesota, and Wisconsin offer a different set of standardized Medigap plans and therefore do not offer a Medigap Plan N.
Plan N pays for:
Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
Part B services (except for some copayments and emergency room visits)
Blood you receive (up to 3 pints)
Part A hospice care coinsurance and copayments
Skilled nursing facility coinsurance
Your Part A deductible
Plan N also covers 80% of foreign travel exchange.
Plan N, like all Medigap plans, provides coverage for out-of-pocket costs leftover by Original Medicare. It does not provide coverage for additional healthcare services.
Compared to Plan G, Plan N also does not cover:
Some Part B copayments and emergency room visits
One of the reasons to enroll in a Medicare Supplement plan, and specifically a Medicare Plan N, is to have better financial predictability. With plan N, you’ll pay:
Your Part B deductible
Select copayments for office visits
Some Part B costs for emergency room visits
Part B excess charges
There are a handful of factors that may impact your Plan N premium:
Where you live
Your smoking status
Your age
Your gender
The insurance carrier
Household discounts (offered by some Medigap plans)
Below you'll find a range of monthly premium costs for Plan N by state. (Data from Medicare.gov)
| State | Monthly Premium Cost Range |
|---|---|
| Alabama | $82-$578 |
| Alaska | $89-$534 |
| Arizona | $78-$569 |
| Arkansas | $14-$557 |
| California | $109-$912 |
| Colorado | $89-$628 |
| Connecticut | $170-$294 |
| DC | $92-$710 |
| Delaware | $98-$3,420 |
| Florida | $126-$1,624 |
| Georgia | $86-$2,478 |
| Hawaii | $88-$558 |
| Idaho | $128-$419 |
| Illinois | $85-$652 |
| Indiana | $73-$546 |
| Iowa | $66-$586 |
| Kansas | $83-$632 |
| Kentucky | $81-$592 |
| Louisiana | $92-$943 |
| Maine | $175-$366 |
| Maryland | $108-$815 |
| Massachusetts | N/A |
| Michigan | $80-$629 |
| Minnesota | N/A |
| Mississippi | $70-$1,494 |
| Missouri | $100-$853 |
| Montana | $86-$1,073 |
| Nebraska | $81-$733 |
| Nevada | $101-$755 |
| New Hampshire | $121-$772 |
| New Jersey | $100-$666 |
| New Mexico | $73-$551 |
| New York | $237-$515 |
| North Carolina | $71-$717 |
| North Dakota | $0-$503 |
| Ohio | $80-$653 |
| Oklahoma | $73-$601 |
| Oregon | $113-$697 |
| Pennsylvania | $81-$587 |
| Rhode Island | $98-$605 |
| South Carolina | $69-$550 |
| South Dakota | $79-$1,767 |
| Tennessee | $79-$1,792 |
| Texas | $72-$657 |
| Utah | $77-$517 |
| Vermont | $147-$642 |
| Virginia | $85-$718 |
| Washington | $147-$239 |
| West Virginia | $75-$3,146 |
| Wisconsin | N/A |
| Wyoming | $83-$583 |
There are three pricing or “rating” structures for Medicare Supplement plans.
Community-rated (aka no-age-rated)
Community-rated Medicare Supplement plans have premiums that are the same for beneficiaries, regardless of age. Premiums will only increase due to inflation and other factors.
Issue-age-rated (aka entry age-rated)
Issue-age-rated Medicare Supplement plans have different premiums based on your age when you enroll in the plan. Premiums will be lower for those who enroll at a younger age, and will not increase as you age. Premiums may increase due to inflation and other factors.
Attained-age-rated
Attained-age-rated Medicare Supplement plans have premiums based on your current age (the age you’ve currently attained). These policies are attractive when you first enroll in a Medigap plan because the premiums are lower for younger enrollees. As you age, your premiums will increase. Premiums may also increase due to inflation and other factors.
There is no Plan N deductible. If you’re enrolled in a Medigap Plan N, your overall deductibles are reduced. Your plan will pay your Part A deductible, but you will still be responsible for the Part B deductible (which is $226 in 2023).
There’s no out-of-pocket maximum for Medigap Plan N because costs are naturally limited. The only out-of-pocket costs you’ll incur for covered services are:
Your Part B deductible
Select copayments for office visits
Some Part B costs for emergency room visits
Part B excess charges
Our Medicare Advisors are here to help compare plans and submit your application. The best time to enroll is during your Medigap Open Enrollment Period, which occurs during the first six months that you have Part B coverage. During this period, you have a guaranteed issue right. This means that insurance companies cannot ask you questions about your health history, and you are guaranteed acceptance into any Medigap plan.
Outside of this time and a few other guaranteed issue periods, insurance companies can ask you questions about your health history, and your application may be denied.
Because all Plan Ns have identical coverage, you can focus your decision on premiums and insurance carriers. Our Medicare Advisors will help you sort through each option, provide insight on insurance carriers’ customer service, and compare premiums (both for today and the future).
Get started: schedule a free consultation or call us at (855) 900-2427!
