Medicare Supplement Insurance Plan N: What You Should Know

Plan N is one of the 10 Medicare Supplement Insurance plans (also called Medigap) that are available in most states. Medicare Supplement Insurance Plan N offers coverage for all but two standardized benefits.

In 2016, 9 percent of Medicare Supplement Insurance plan beneficiaries were enrolled in Plan N.1

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What does Medicare Supplement Plan N cover?

There are nine potential Medicare out-of-pocket costs that can be covered by a Medicare Supplement Insurance plan. Medicare Supplement Insurance Plan N offers coverage for seven of those nine benefits.

Some of the Medicare costs that are covered in full by Medicare Supplement Plan N include:

  • Medicare Part A coinsurance and hospital costs
    Part A coinsurance can reach as high as $682 per day for long-term hospital stays in 2019, if you’re hospitalized for an extended period of time (more than 60 days).

  • Medicare Part B coinsurance or copayments
    Medicare Part B typically requires a 20 percent coinsurance payment for covered services.

  • Medicare Part A hospice care coinsurance or copayments
    Medicare Part A often requires a copayment for prescription drugs administered as part of hospice care and coinsurance payments for respite care.

  • Coinsurance for skilled nursing facility stays
    Part A also requires coinsurance payments for inpatient stays at skilled nursing facilities. These coinsurance costs can total $170.50 per day for days 21 through 100 of a stay at a skilled nursing facility in 2019.

  • Medicare Part A deductible
    Before having to pay any coinsurance, Medicare Part A beneficiaries must first meet a deductible of $1,364 for each benefit period in 2019.

    A benefit period begins the day you are admitted to a hospital or skilled nursing facility and ends when you have been out of the facility for 60 consecutive days. You could potentially face multiple benefit periods within one calendar year, and you must meet your Medicare Part A deductible in each benefit period before Medicare begins to pay its share of your costs.
  • First three pints of blood
    Medicare does not cover the first three pints of blood that are used for a transfusion, which can cost into the hundreds of dollars per pint.2  

The seventh and final benefit area covered by Medicare Supplement Insurance Plan N is emergency care that is received outside the U.S. Medicare only covers such care under very limited circumstances, but Medicare Supplement Insurance Plan N covers 80 percent of the costs for qualified emergency medical care abroad.

Medicare Supplement Insurance Plans 2019
Medicare Supplement Benefits A B C D F1 G K2 L3 M N4
Part A co-insurance and hospital costs
Part B co-insurance or co-payment 50% 75%
First 3 pints of blood 50% 75%
Part A hospice care co-insurance or co-payment 50% 75%
Co-insurance for skilled nursing facility     50% 75%
Medicare Part A deductible   50% 75% 50%
MedicarePart B deductible              
Medicare Part B excess charges              
Foreign travel emergency     80% 80% 80% 80%     80% 80%
1. Plan F offers a high-deductible plan. This plan requires you to pay a $2,300 deductible in 2019 before it covers anything.
2. Plan K has an out-of-pocket yearly limit of $5,560 in 2019. After you pay the out-of-pocket yearly limit and yearly Part B deductible, it pays 100% of covered services for the rest of the calendar year.
3. Plan L has an out-of-pocket yearly limit of $2,780 in 2019. After you pay the out-of-pocket yearly limit and yearly Part B deductible, it pays 100% of covered services for the rest of the calendar year.
4. Plan N pays 100% of the Part B coinsurance, except for a copayment of up to $20 for some office visits and up to a $50 copayment for emergency room visits that don’t result in an inpatient admission.

Plan N may be a good fit for you

There are only three Medicare Supplement Insurance plans that offer more benefits than Medigap Plan N.

Plan N only fails to cover two of the nine Medigap benefit areas:

  • The Medicare Part B deductible
  • Medicare Part B excess charges

The Medicare Part B deductible is $185 per year in 2019, which works out to just a little more than $15 per month. If you can find Medicare Supplement Plan N with premiums that are at least $15 cheaper than a plan that covers the Part B deductible, the tradeoff may be worth it for you.

Part B excess charges, which can be as high as 15 percent of the Medicare-approved amount for medical services, are only incurred when you visit a health care provider that does not accept Medicare assignment.

If you avoid health care providers that do not accept Medicare assignment, you may not have to worry about being charged an excess amount.

Shopping for Medicare Supplement Insurance Plan N

Medicare Supplement Insurance is sold by private insurance companies, meaning the cost and availability of plans can differ from state to state.

To learn more about Medicare Supplement Insurance Plan N and other Medigap plans that may be available where you live, speak with a licensed insurance agent at MedicareSupplement.com.

 

1 AHIP. State of Medigap 2018 Trends in Enrollment and Demographics. (June 2018). Retrieved from https://www.ahip.org/wp-content/uploads/2018/06/State_of_Medigap18_FINAL.pdf.

2 Hemez, Colin. Blood Transfusion Costs. (Dec. 21, 2016). Yale Global Health Review. Retrieved from yaleglobalhealthreview.com/2016/12/21/blood-transfusion-costs.

Copyright 2018 TZ Insurance Solutions LLC. All rights reserved.

MedicareAdvantage.com is a website owned and operated by TZ Insurance Solutions LLC. TZ Insurance Solutions LLC and TruBridge, Inc. represent Medicare Advantage Organizations and Prescription Drug Plans having Medicare contracts; enrollment in any plan depends upon contract renewal.

Plan availability varies by region and state. For a complete list of available plans, please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week or consult www.medicare.gov.

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