Is Medicare Plan N Right For You?

Are you considering whether to go for the Medicare plan N or Medicare Advantage Plans 2020? Then the following are some of the things which you need to learn in regard to plan N so that you can decide on which way to go.  When you turn 65, the original Medicare will not cater to all your medical expenses thereby leaving a gap and plan N might just come in handy. 

What Is Plan N Supplement?

It is an additional product which is designed to help in ensuring that it pays for your otherwise out of pocket expenses which are not covered by part A and B of Medicare. It will fill in the gap in the medical, hospital, and skilled services. It has the same benefits as offered by plan F while costing less and that is what makes it an option that is attractive for many others. 

What Will Be Covered?

The Medicare supplement plan N covers four basic areas:

  • Hospitalization: After the Medicare benefits end, plan N pays up to 365 days of the Part A coinsurance and coverage
  • Blood: It pays for the initial 3 pints of blood when the need arises with the Medicare paying for the rest after the 3 pints.
  • Medical expenses: It pays for the 20% of expenses approved by the Medicare or outpatient services in the hospital and part B coinsurance which excludes copays for ER and office visits
  • Hospice care: It pays for the coinsurance of part A

What Is Not Taken Care Of

There are several things which you will not enjoy while on the Plan N. It will not be able to cover the Medicare part B excess charges or deductibles. The excess charges refer to the additional costs after what the Medicare has approved is exhausted. It is not also going to take care of coinsurance or copay for emergency room and office visits. 

How Much Does It Cost?

Plan N just like any other Medicare supplement plans differ by insurance and location with most companies basing their prices on the following 3 rating systems in order to set their premiums:

  • Community Rated: Everyone who has the policy ends up paying the same price irrespective of their age. The price can still change due to inflation but it will not increase due to your age.
  • Attained Age Rated: It starts low and increases with age
  • Issue Age Rated: It is based on your age at the time you are purchasing the premium. This means that, if you are younger, then it will cost less. After being issued, the price will not increase again irrespective of change in your age.

There could be a variation in costs. The difference might arise due to the insurance company selling the policy with or without discounts or decides to use medical underwritings. When you are shopping around for a Medigap Plan N policy, there is a need to know the price rating system which is being used. With that in mind, you will be in a position to understand your quote better.