Medigap Plan N was created to fill the Loopholes of the Other Medigap Plans.

Medigap Plans are Medicare supplementary plans sold by insurance companies to beneficiaries to be used in paying the beneficiaries’ share of Medicare-covered health services. Medigap is designed to plug the gaps in the Medicare coverage that would have been shouldered by the beneficiary.

Medicare supplement Plan N or Medigap Plan N was made available to beneficiaries in June of 2010. It is distinctive for its cost-sharing features that keep premiums low. This supplement is said to be a better version of the very popular Medigap F plan. Plan N covers the deductible in Medicare Part A, which as of 2011 stands at $1,132. While it does not pay for the deductible for Medicare Part B, it shares the cost for co-payment and coinsurance for this type of Medicare coverage. This Medigap supplement will pay all of the beneficiary’s coinsurance after the co-payment is satisfied. Expenses involved in long hospitalization or stays in skilled-nursing facilities, as well as emergencies while traveling abroad are among the coverage beneficiaries can enjoy in Medigap Plan N. When a medical service that Medigap N covers is obtained by the beneficiary, this supplementary coverage will reduce the beneficiary’s out-of-pocket costs.

There are actually ten standardized Medigap plans that offer various degrees of protection at different premium costs. Insurance companies offer the same kind of plan features and coverage but the premiums are different. This is a good thing for beneficiaries as they would only have to find the best price out of all the providers of this supplementary plan.

Many people are of the opinion that Medigap Plan N is better than the Medicare Advantage Plan or Medicare Part C. Medigap N covers the out-of-pocket expenses of both outpatient and in-patient medical services under Medicare Part A, which includes the deductible, coinsurance, and co-payment. It also covers the outpatient coinsurance in Medicare Part B. Medical emergencies while traveling abroad are covered at 80 percent after a deductible of $250. The lifetime maximum is $50,000.

The cost-sharing framework for Medigap N is somewhat similar to that of Medicare Advantage. But Medigap N has a cost-sharing structure that is unique to this supplementary plan. Beneficiaries will shoulder the deductible for Medicare Part B which is at $162 in 2011. They will also shoulder the $20 co-pay for a doctor’s visit and the $50 co-pay for an emergency visit. Remember that when you avail of any Medicare Part B services, you will have to pay for the first $162 yearly. Remember too that the co-payment costs for various doctors and emergency rooms are not constant. They may sometimes be less than the allowed amount.

You may want to do a little research on Medigap N before purchasing this supplementary plan. Many people get turned off by the cost of the plan without first looking into the features and benefits. You should also make a comparison between this supplementary plan and Medicare Advantage to determine which one really works for you. Finally, compare the premium costs of this plan as offered by different insurance companies and find the one that best suits your budget.

The premiums for supplemental Plan N can get quite competitive when compared to other Medigap plans, the reason being that insurance companies’ out-of-pocket expenses are kept low with the cost-sharing structure. You should not have to worry that a lower premium will result to lesser coverage at the time you will be using the plan as even costly hospital confinements are covered.

A lot of insurance companies offer Medigap N. This plan is also offered by some associations for retirees. The cost of premium is lower than the premium for Medicare Advantage Plans and underwriting is not really strict. Here are some more benefits of Medigap N:

• Beneficiaries will not have to bother with annual enrollment periods
• There are no network restrictions so the beneficiary can choose any provider as long as that provider accepts Medicare
• There is no confusion about the services and the costs

Medigap plans do not cover out-of-pocket costs for drug coverage or Medicare Part D. You have to be certain that your drug coverage is adequate based on your personal circumstances. In the end, Medigap N helps you save money and relieve you of the burden of paying for some of your out-of-pocket expenses.