With so many choices in today’s Medigap market, it’s quite easy to get overwhelmed. You want to make the right decision the first time and not have to worry about it anymore. The truth is you do need to pay attention to some important details not only when you first sign up for a Medigap plan, but also from year-to-year as you get older. Due to options like Plan F which offers 100 percent coverage, something like a Plan N Medicare Supplement is often overlooked. This is a big mistake for many people.
What is Plan N?
Medicare currently offers 10 different plans that are lettered A through L. Each with its own slightly different benefits, there really are only a few different plans that the majority of people go with. These plans are:
- Plan F
- Plan G
- Plan N
Medicare Supplement Plan F pays 100 percent of the gaps in Medicare. This means no deductibles, coinsurance, or co-payments to pay out-of-pocket. Many people love this plan for these reasons, however they do pay more in monthly premiums to have the plan.
Medigap Plan G is identical to Plan F except the plan holder must pay the annual Part B deductible themselves, rather than the plan paying it for them such as in Plan F. The benefit of paying this themselves however is they pay lower monthly premiums than Plan F. This almost always results in a much greater savings when all is said and paid.
Plan N Medicare Supplement is a relatively new plan that was first offered in 2010. This plan was designed to still offer outstanding coverage alongside Part A and B Medicare, with some additional cost-sharing that was the responsibility of the beneficiary. Some items that you must pay out-of-pocket should you decided on a Medigap Plan N are:
- The Part B annual deductible (This is usually around $150 per year). Prior to Medicare paying 80 percent of your medical bills you must meet this deductible. It is a calendar year deductible and resets on January 1st of each year.
- Up to a $20 co-pay once your Part B deductible is met, per doctor’s visit. This depends on what you are visiting your doctor for. You may have no-copay, or even just a $5 co-pay depending on the visit. It will never be more than $20.
- A $50 co-pay if you visit the emergency room but you are not admitted
- This plan does not cover Part B excess charges. These occur if you visit a doctor that does not accept the assigned rates from Medicare. He or she can then charge up to 15 percent extra of what Medicare would normally pay. You would then have to pay this amount. This is rare as most doctor’s accept the assigned rates. Check with your doctor to see.
Plan N is always less expensive than Plans F or G within the same company which makes this a very good option for people to consider. You can save on monthly premium and only pay extra should you actually use your coverage.
As with all the Medigap plans a Plan N Medicare Supplement is offered by several companies and each one has the same benefits. Use our FREE online quote engine by entering your zip code below to get quotes from multiple companies.
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