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As of June 1st, 2010 the landscape of the Medicare Supplement market changed significantly with the advent of Medicare Plan N (and M). At that time, the US Government required all companies who were marketing and selling Medicare Supplement plans to abide by the newly modernized and upgraded Medigap chart. Supplement Plans M and N were a part of this modernization process and promised to be better choices for both existing and new Medicare beneficiaries. Now the only question was, are these plans right for you?"

What Medicare Supplement Plan N Covers

Although it is similar to Medicare Plans D and F, Medicare Plan N utilizes a system for sharing costs in order to keep a person's premiums down. Unlike Plans D and F, it will cover all or a portion of the deductibles incurred in Medicare Parts A and B. A new co-pay structure was implemented in exchange for insurance premiums that could be up to 30% lower than what they were. Under Plan N, doctor visit co-pays are $20 and emergency room visit co-pays are $50.

In addition to the change in the co-pay structure, if a hospital admission is required because of the visit to the ER, the $50 co-pay will be waived. In addition to the above, Medicare supplement Plan N provides 100% coverage for deductibles under Part A but no coverage for Part B deductibles. The Medicare basic core benefits are not covered under Plan N including:

• all expenses after Medicare benefits run out for in-patient hospital care
• coverage for in-patient hospitalization charges under Part A
• emergency benefits when traveling internationally
• initial 3 pints of blood
• Part A co-insurance for palliative medication in hospice care
• Part B co-insurance expenses

It is estimated that the premiums incurred under Medicare Plan N will cost about 77% of Plan D and 70% of Plan F premiums. For individuals with budget concerns, Plan N will most likely be better than any of the Medicare Part C Advantage plans.

Additional Considerations

Many individuals claim that Medicare supplement Plan N was the better option for them because the out-of-pocket expenses are considerably lower and there are no restrictions where networks are concerned. Additionally, not every healthcare insurance provider offers Plan N so you will need to search for those companies who do offer it should you want this coverage. Be sure that you spend time researching to this before committing to any insurance provider.