Medicare Plan N is one of two guaranteed issue options available to seniors. It is a lower premium option than the other plan, Medicare Part A. Medicare Plan N is not without its drawbacks though.
Medicare Plan N
It will increase your out-of-pocket expenses and it does not cover all of the services provided in the original Medicare program. If you are considering Medicare Plan N, here are some things that you should know before you begin.
Medicare Plan N is primarily intended for seniors that need coverage for out of pocket expenses that they would not be able to afford if they had to pay out of pocket expenses on their own Medicare Plan N coverage. Seniors that do not qualify for Medicare Parts A or B can use Medicare Plan N to fill the coverage gap. With Medicare Plan N, there are no deductibles, co-pays, and most importantly no coinsurance.
If you are a senior citizen, then Medicare Plan N is for you. However, if you are not a senior citizen, Medicare Supplement Plan F is for you. Medicare Supplement Plan F also offers no deductibles, co-pays, and coinsurance. The additional benefit of this type of plan is that it covers more of the services listed in Part A and B than Plan N does.
Medicare Plan N premiums will start out quite high. It is important to note that regardless of the plan you choose, you will still have to pay these fees. You can reduce the amount that you pay through your monthly budget. For seniors that qualify for Medicare Advantage Plans, there are other means of reducing the costs of Plan N. Some of these ways include: choosing a higher deductible, changing to a lower deductible, increasing your existing coverage, and changing from a higher to the lower policy premium. For those that do not qualify for these other options, the next best thing is to enroll in Medicare Part A and Part B.
Although Medicare Plan N may seem like a good option, it is important to consider other options before making a final decision on Medicare Plan N. There are many supplemental plans available, which could provide better coverage. Before deciding on a particular plan, it is a good idea to talk with your primary care physician or the Medicare representative.
They will be able to give you advice on what type of policy would be best for your current situation. They will also be able to tell you how much you can expect to pay in premiums, as well as other helpful information regarding Plan N.
One of the most important things to remember is that if you are considering changing the coverage option on a Plan N, it must remain effective throughout your lifetime. This means that even if you change your coverage options at a later date, the policy is still valid for your current age and Medicare eligibility.
Medicare Plan N premiums are based on your “indemnity period.” This refers to the amount of time that you have to collect a specified number of Medicare benefits. If you collect a higher number of Medicare benefits before the coverage starts, you will pay lower rates. This is because you are “settling in” to Medicare benefits, and the new plan starts at a lower rate.