Medicare Supplement Plan N is a type of insurance plan that you can purchase to help lower your out-of-pocket Medicare costs. These plans can cover costs like premiums, copays, and deductibles.

If you’re eligible for Medicare, you can get optional additional insurance coverage through a Medicare supplement plan, also called a Medigap plan.

Medigap Plan N is one such supplement plan. It is not a part of Original Medicare, like Part A and Part B, which cover basic medical needs. Instead, it’s a plan you can choose to have in addition to your Original Medicare coverage.

Choosing a Medigap plan can be confusing. Various plans offer different levels of coverage and benefits. Understanding these benefits can help you choose a plan that works for you.

Like the other nine Medigap plans, Plan N is a privately administered type of Medicare supplement insurance. It helps cover specific out-of-pocket healthcare costs that Medicare Part A and Part B do not.

Plan N covers:

  • Medicare Part A coinsurance, which is an amount you must pay out of pocket for services and hospital care
  • Medicare Part B coinsurance, which is an amount you must pay out of pocket for outpatient care

If you spend a lot each year on coinsurance and copays, Medicare Supplement Plan N may pay for itself pretty quickly.

The law requires that companies must standardize Medigap Plan N policies. That means that no matter which company you purchase a Medicare Supplement Plan N from, it must offer the same basic coverage.

Not every Medigap plan is available in every location. Plan N doesn’t have to be sold in every state, and insurance companies that sell Medicare supplement policies can choose where to sell Plan N.

If you live in Massachusetts, Minnesota, or Wisconsin, the standardization of Medigap plans may differ.

Medigap covers only Medicare-approved services.

Medicare Supplement Part N covers the cost of the following:

  • Medicare Part A deductible
  • Medicare Part A coinsurance and hospital stays up to 365 days
  • Medicare Part B coinsurance for outpatient care and procedures
  • Medicare Part B copays at doctors’ offices
  • blood transfusion (up to the first 3 pints)
  • hospice care and skilled nursing facility coinsurance
  • 80% of healthcare costs while traveling outside the United States

It does not cover things like:

  • long-term care
  • vision
  • dental
  • hearing aids
  • eyeglasses
  • private-duty nursing

Plus, Medicare Supplement Plan N does not cover the deductible for Medicare Part B. This is because of a change in Medicare law that prohibits all Medigap plans from covering the Medicare Part B deductible.

While Medigap Plan N covers 100% of your Plan B coinsurance, you’re responsible for doctor’s visit copays of up to $20 and emergency room visit copays of $50.

Plan N is similar to plans F and G, but it can be significantly less expensive. For some people, Plan N may be a cost-effective solution for Medigap coverage.

You pay a monthly premium for Medicare supplement plans. Your costs for Plan N can vary depending on where you live and the insurance company you’re buying the policy from.

To get an estimate of how much you will pay for Plan N in your area, you can go to Medicare’s plan finder tool and enter your ZIP code.

If you’re enrolled in Medicare parts A and B, you’re eligible to purchase Plan N if it’s available in your state. As with all Medigap plans, you must meet enrollment standards and deadlines.

To determine whether Medigap Plan N is a good fit for your needs, consider the following pros and cons of selecting this option.

Advantages of Medigap Plan N

One benefit of Plan N is that its monthly premiums are less than those of Medigap Plan F and Plan G, even though they all offer similar coverage.

Plan N also completely covers your Medicare Part A deductible, which is one of the more expensive deductibles in Medicare and repeats for each benefit period throughout the calendar year.

If you travel abroad, Plan N might be a good option since it covers 80% of your costs if you need healthcare while outside the United States.

Disadvantages of Medigap Plan N

Plan N is one of the few Medigap options that doesn’t fully cover Part B copay and coinsurance costs. With Plan N, you’ll pay $20 for some doctor’s visits and $50 if you go to the emergency room.

Plan N also doesn’t cover Part B excess charges, which you pay if a healthcare practice charges more than Medicare will pay for services.

How to shop for a Medigap plan

Choosing a Medigap plan can be difficult since you can’t always anticipate your future healthcare costs. Consider the following questions when you review Medicare supplement plans:

  • Do you typically hit or exceed your annual Medicare Part A deductible? The total cost of a year of Plan N premiums may be more or less than the deductible you usually pay.
  • If you add up expenses like copays, emergency room visits, and blood transfusions, how much do you typically spend in a year? If you divide that number by 12 and it’s more than the monthly premium for Plan N, the supplement plan may save you money.
  • Are you currently in the Medicare open enrollment period that happens when you turn age 65 years? Signing up for a Medigap plan during open enrollment may be your only opportunity to purchase Medigap coverage when your health status and medical history can’t be used to refuse your application.

Medicare Supplement Plan N is a popular Medigap plan that covers many out-of-pocket costs from Medicare.

Like every Medicare supplement plan, Medigap Plan N has pros and cons, and costs vary based on where you live.

If you have questions about your options or want to learn more, you can call the free Medicare help hotline at 800-MEDICARE (800-633-4227) or contact your local State Health Insurance Program office.