Why Medigap Plan N is the Best Choice
Shopping for a Medicare Supplement can be confusing. Hopefully, this post about the benefits of owning a Medigap Plan N will make the decision process easier. In full disclosure, I will always recommend you buy a Medigap Plan N if it is competitively priced in your area. Here’s why.
Medigap Plan N Covers All the Necessary Benefits
Whatever Medigap Plan you choose it should always cover your largest potential liabilities which are the Medicare Part A Deductible and Medicare Part B Coinsurance. Plan N covers both, along with the following other benefits.
- Medicare Part A Coinsurance
- Medicare Part B Coinsurance
- Blood (First 3 Pints)
- Part A Hospice Care Coinsurance and Copay
- Skilled Nursing Facility Care Coinsurance
- Foreign Travel Emergency
Medigap Plan N Does Not Cover Unnecessary Benefits
Not having coverage for some benefits makes a lot of sense. Why would you want to pay for something you can cover yourself, or pay for coverage you will likely never use?
There’s no coverage for your Medicare Part B Deductible. In 2016 this benefit is only worth $166 once a year. Insurance companies will often charge you more to administer this benefit for you.
There is also no coverage for any Medicare Part B Excess charges. For more information on why this coverage is unnecessary, please read “The Truth About Medicare Part B Excess Charges.”
Medigap Plan N Has Copays
There are Plan N copays for doctor visits and emergency room visits. Copays are a good thing. By requiring a copayment, insurance companies drastically cut down on the number of frivolous claims, saving them money. With fewer claim expenses you have lower rate increases over the long term. Historically, Medigap Plan N has had smaller increases than Medigap Plan F and Medigap Plan G.
Compare the Rates Before You Decide
Of course, none of this applies if Plan N is not competitively priced in your area. For more information on comparing the different plans, I recommend reading “Medigap Plan G or Medigap Plan N” and “Medigap Plan F or Plan N.”
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