What Is Medicare Supplement Plan N, or Medigap Plan N?
Key Takeaways
- Medicare Supplement Plan N is one of 10 Medicare Supplement Insurance (Medigap )Medicare Supplement Insurance (Medigap) is designed to provide coverage that Original Medicare (Parts A and B) does not. Medigap policies are purchased in addition to Original Medicare and have their own monthly premiums you’ll need to pay. policies available in most states.
- Medigap plans help with out-of-pocket costs from Original Medicare’sOriginal Medicare is a fee-for-service health insurance program available to Americans aged 65 and older and some individuals with disabilities. Original Medicare is provided by the federal government and is made up of two parts: Part A (hospital insurance) and Part B (medical insurance). Part A and Part B, including copaysA copayment is the fixed amount you pay directly to your provider for medical services or prescription drugs covered in your plan. For example: If your plan includes a copayment of $20 for office visits, you’ll pay $20 to your doctor whenever you have an appointment. , coinsurance and deductiblesA deductible is an amount you pay out of pocket before your insurance company covers its portion of your medical bills. For example: If your deductible is $1,000, your insurance company will not cover any costs until you pay the first $1,000 yourself. .
- Medicare Plan N offers a lower premiumA premium is a fee you pay to your insurance company for health plan coverage. This is usually a monthly cost. than other comprehensive Medigap plans because it doesn’t cover the Part B deductible and Part B excess charges.
- All Plan N policies must offer the same benefits, but not all companies must sell Plan N.
- Plan N is sometimes compared to Plan G, which has higher monthly payments but covers more than Plan N.
Medicare Supplement Plan N, also called Medigap Plan N, is a type of Medicare supplemental insurance plan designed to help cover some of the healthcare costs that Original Medicare Parts A and B do not pay for, such as copayments, coinsurance, and deductibles. Medicare Supplement Plan N generally has lower monthly premiums compared to other Medigap plans. However, Plan N’s coverage also has some limitations.
Medigap At a Glance
Medicare Supplement insurance policies are also commonly called Medigap plans. These are sold by private insurance companies and are regulated by federal laws to ensure standardization. Medigap policies do not offer additional benefits. Instead, Medigap helps cover the costs that Original Medicare Parts A and B do not pay for. You must enroll in Original Medicare to be eligible for Medigap.
Medicare Supplement plans are standardized and labeled A through N in most states. This means that the benefits of a specific plan type, such as Plan N, are the same no matter which insurance company sells it. The difference is in the insurer providing the plan and plan costs. Let’s compare the costs and benefits of Medicare Supplement Plan N with other Medigap plans.
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Understanding Medicare Supplement Plan N
Medicare Supplement Plan N is offered by private insurance companies and is one of several standardized Medigap plans available in most states. Medigap Plan N helps to cover select out-of-pocket costs of Original Medicare.
Plan N often costs less than the otherwise comparable Plan G because it requires more cost-sharing. It may be a good choice if you are generally healthy and anticipate minimal use of your benefits or are willing to pay occasional copays.
Key Features of Medicare Supplement Plan N
- Medicare Supplement Plan N pays for Part A coinsurance and hospital costs for up to 365 days after Medicare benefits are used up. It also pays for the Part A deductible and coinsurance for skilled nursing facilities.
- Plan N covers coinsurance for Part B, but not the Part B deductible. It also requires copayments for physician office and emergency room visits.
- Plan N covers the first three pints of blood that beneficiaries may need for surgery or transfusion.
- Medigap Plan N covers coinsurance or copayments for hospice care.
What Does Medicare Supplement Plan N Cover?
Medicare Supplement Plan N is a Medicare supplement insurance plan designed to help cover out-of-pocket costs not covered by Original Medicare. It does not offer additional services such as vision and dental care.
Coverage provided by Medigap Plan N
- Part A coinsurance and hospital costs
- Part A deductible
- Part A hospice care coinsurance
- Part B coinsurance
- The first three pints of blood used in a medical procedure each year
- Foreign travel emergency coverage
- Skilled Nursing Facility (SNF) care coinsurance
Not Covered by Medigap Plan N
- Part B deductible is not covered
- Copayments for some Part B services is not covered, such as copays for an outpatient office visit
- Part B excess charges are not covered. Excess charges are the additional charges a doctor may bill if they don’t accept Medicare. This can be up to 15% above the Medicare-approved amount.
How Medicare Supplement Plan N Compares With Other Medigap Plans
| Benefits | Medicare Supplement Plan N | Plan A | Plan B |
|---|---|---|---|
| Available to those who became eligible for Medicare in or after 2020? | Yes | Yes | Yes |
| Part A coinsurance and hospital costs for up to 365 additional days after Medicare benefits are disbursed | Yes | Yes | Yes |
| Part B coinsurance or copayment | Yes | Yes | Yes |
| Part A hospice care coinsurance or copayment | Yes | Yes | Yes |
| Part A deductible | Yes | Not covered | Yes |
| Part B deductible | Not covered | Not covered | Not covered |
| Part B excess charge | Not covered | Not covered | Not covered |
| Out-of-pocket limit | N/A | N/A | N/A |
| Blood (first three pints) | Yes | Yes | Yes |
| Skilled nursing facility care coinsurance | Yes | Not covered | Not covered |
| Foreign travel exchange up to plan limits | 80% | Not covered | Not covered |
What’s the Difference Between Medigap Plan N and Plan G?
Both Medicare Plan N and Plan G are highly comprehensive options. For example, they both cover the Part A deductible and coinsurance for care received at a skilled nursing facility. But if you or a loved one is weighing Medicare Plan N vs. Plan G, there are some key differences to know about when making your choice.
- Plan G covers more, but has a higher monthly cost. Unlike Medicare Plan N, Plan G will cover your excess charges in return for a higher premium. Plan G also covers all of your Part B coinsurance; with Plan N, you may have copayments for some office and emergency room visits.
- Plan G may have a high deductible option to lower your costs. In some areas, you can choose to pay all your coinsurance, copayments and deductibles until you reach your deductible. After you reach this amount, your Plan G policy will pick up the standard amounts. In exchange, these plans typically offer a lower monthly premium.
Here’s a side-by-side comparison of Medicare Plan G and Medicare Plan N:
Medicare Plan N vs. Plan G
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Costs For Medigap Plan N
Medicare Supplement Plan N generally offers lower monthly premiums compared to more comprehensive plans like Plan G or Plan F. Because of the lower monthly premium, there is more member cost sharing than other Medigap plans. Let’s break down the costs of Medigap Plan N:- Premiums: The premium is the monthly amount paid to the Medigap plan. This is in addition to your Medicare Part A and Part B premiums. The Medigap premium can be determined through one of three methods:
- Community-Rated: This method utilizes the same cost for all beneficiaries in an area, regardless of age.
- Issue-Age-Rated: This method determines the cost of premium based on the age when you first enroll.
- Attained-Age-Rated: This method increases the premium price as you age.
- Deductibles: Both Medicare Part A and B have deductibles. In 2025, the Part B deductible is $257, and the Part A deductible is $1,676. Plan N does not cover deductibles, so these costs will still have to be paid out of pocket.
- Coinsurance: After meeting the deductible, Medicare Supplement Plan N will pick up your share of Original Medicare’s coinsurance. For example, Part B typically covers 80% of all covered services, leaving you responsible for the remaining 20% of costs. Medigap Plan N will cover that 20%.
See It In Action
Let’s see how Medicare Supplement Plan N works. Suppose you need to see a cardiologist for an outpatient office visit and the total charge to Medicare is $300. In this example, you have already met your Part B deductible.
After meeting the deductible, Medicare Part B covers 80% of the total $300, or $240. You are responsible for paying the remaining 20%, or $60. If you have Medigap Plan N, your Medigap plan will cover the remaining $60.
How to Choose a Medigap Plan
Choosing a Medigap plan involves understanding your healthcare needs, budget, and the differences between the available plans. The following steps can help you choose a Medigap plan.
- Assess your health care needs. Do you frequently visit physicians, require long term care, or have multiple chronic medical conditions? If so, a Medigap plan with more comprehensive coverage for out-of-pocket expenses may suit you better than one with fewer coverages.
- Familiarize yourself with the lettered plans. Medigap plans are standardized in most states and are labeled A through N. Each lettered Medigap plan offers different benefits.
- Research the insurance companies reputation. Look for online reviews or call the Better Business Bureau to learn more about how customers rank their experiences with the insurance company offering the Medigap plan.
- Compare costs and assess your budget. The cost of your Medigap plan depends on your location, chosen plan, and the insurer selling the plan. In addition, Medigap plans differ in premiums and out-of-pocket expenses. Shop around to determine which plan has the best mix of budget-friendliness and insurer reputation.
Enrolling in Medigap Plan N
Once you choose a Medigap plan, the next step is to enroll. The best time to enroll is during your Medigap Open Enrollment Period, which lasts six months and starts when you turn 65 and enroll in Medicare Part B.
During this period, you can buy any Medigap policy without being denied or charged more due to pre-existing conditions. After this enrollment period ends, insurers can deny you coverage or charge more due to health conditions.
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Putting It All Together
Medicare Supplement Plan N is ideal for people looking for a balance between affordable premiums and reasonable out-of-pocket expenses. It is available nationwide — though not every insurer may offer Plan N as an option — and is a popular choice among beneficiaries who don’t frequently visit doctors or the hospital. Working with a licensed insurance agent can help you find the Medigap plan best suited for your medical and financial needs.
Sources
- How to compare Medigap policies. Medicare.gov.
- F, G & J Deductible Announcements. CMS.gov.