An Explanation of the Advantages of Medicare Supplement Plan N

By Fred Wilson


When making a purchase into a Medicare health plan, agreeably that beneficiaries are better suited working with an experienced agent to determine what products would meet his or her needs. As agents are we giving our clients the big picture of the Medicare insurance field?

Most agents explain to their clients the differences between Medicare Advantage and Medicare Supplement Plan F. Both are superior products that fulfill many clients' needs quite nicely, but that's where the differences between these two product stop. Factually, if you were to plot Medicare health plan costs and benefits along a grid, Medicare Advantage and Plan F would be at opposite end of the grid. Succinctly, we're asking our patrons to make an "all-or-nothing" judgment between two highly different options. Shouldn't we be finding something in the middle to offer?

Most insurance providers educate their clients on the difference between Medicare Advantage and Medicare Supplement Plan F. Both are good products that work for many clients' needs, but that's where the similarities between these two products stop. The facts are, if you were to plot Medicare health plan costs and benefits along a chart, Medicare Advantage and Plan F would be at opposite end of the chart. Figuratively, we're asking our clients to make an "all-or-nothing" decision between two highly different options. Would it not be better to be offering something in the middle?

Above is a diagram that illustrates the differences, so you can help your people narrow their choices to the plan that's right for them.

On June 1, 2010 the Federal Government implemented several changes to the Medigap insurance plan offerings. Two new plans were created that offer benefits on a cost sharing basis. The two new plans are Medicare Supplement Plan M and Medicare Supplement Plan N. Since the two new plans were expidited in June of 2010, Medicare Supplement Plan N enrollments have increased formidably. Briefly a discussion of the benefits of the Plan N Medicare Supplement along with an informative chart detailing the benefits of Medigap Plan N follows above.

As reflected in the above chart Medicare Supplemental Plan N offers a cost saving feature known as a co-pay. Simply put, the policyholder receives a reduction in premium when compared to other Medigap plans because they are in effect agreeing to share in the cost of both physicians visits and emergency room visits. The insured will pay up to a $20 co-payment for physicians visits and up to $50 for emergency room visits. It's important to note the term "up to". Basically if the Medicare 20 percent co-insurance equals less than $20 for a physicians visit or $50 for emergency room visits, then the insured pays the lesser of the two. The emergency room co-payment will also be waived if the insured is admitted to the hospital overnight within 24 hours.

Medicare Supplement Plan N is appealing to those currently covered by a Medicare Advantage program which offers cost sharing but is mostly restrictive in benefits and doesn't allow the freedom of choice for any physician or hospital. Younger and/or healthier patrons will also enjoy the savings offered by a Plan N Medigap policy.




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