Medicare Plan N covers the Part B deductible for most beneficiaries, but not all. It pays the standard $246 annual deductible (2024 rate) for outpatient services, such as doctor visits and preventive care, under Part B.
Plan N is a Medicare Supplement (Medigap) policy sold by private insurers. It fills gaps left by Original Medicare, including copays and coinsurance. The Part B deductible is one of the costs it typically covers, though coverage varies slightly by state and insurer.
Original Medicare requires beneficiaries to pay the Part B deductible annually before benefits begin. For 2024, that amount is $246. Plan N eliminates this cost for most enrollees, reducing out-of-pocket expenses. Without Plan N, a beneficiary would pay this amount before Medicare starts covering services.
When you use a service covered under Medicare Part B-like a routine physical exam, cancer screenings, or lab tests-you're responsible for the Part B deductible until it's met. After that, Medicare pays 80% of approved charges, and you pay 20% coinsurance.
Plan N covers the 20% coinsurance and the $246 Part B deductible. It also limits your copay for office visits to $20 per visit, which is a key feature distinguishing it from other Medigap plans.
For example: A beneficiary visits their primary care doctor for a blood test. The service costs $150. Medicare pays $120 (80%), leaving $30 for the patient. But because the Part B deductible hasn't been met yet, the patient must first pay the $246 deductible. With Plan N, the plan covers the entire $246 and the $30 coinsurance, so the patient pays nothing.
Plan N covers:
It does not cover:
Some states, such as California and New York, offer modified versions of Plan N with additional benefits. These may include coverage for the Part B deductible and copays, but the core structure remains consistent across states.
| Benefit | Plan N Coverage | Original Medicare |
|---|---|---|
| Part B Deductible | Covers $246 (2024) | Requires payment by beneficiary |
| Coinsurance (20%) | Pays 100% | Beneficiary pays 20% |
| Doctor Visit Copay | $20 per visit (up to two) | No copay, but 20% coinsurance applies |
| Part D Drugs | Not covered | Not covered |
Many people assume Plan N covers all Part B costs. That's incorrect. While it covers the deductible and coinsurance, it doesn't eliminate all out-of-pocket spending. The $20 copay for office visits applies each time you see a doctor, and those visits still count toward your annual limit.
Another misconception is that Plan N automatically covers the Part B deductible nationwide. This is true for most states, but some insurers offer different benefit designs in specific regions. Always confirm coverage details with your insurer or through the official Medicare website.
A lesser-known fact: Plan N does not cover the Part B deductible for services received outside the U.S., except in emergencies. If you travel internationally and need care, the deductible applies unless you have a separate travel insurance plan.
Consider a 72-year-old retiree in Florida who sees her primary care physician four times a year. Each visit includes a blood panel and a discussion of medication management. The average cost per visit is $120.
Without supplemental insurance:
With Plan N:
Plan N reduces annual out-of-pocket costs from $342 to $80-a savings of $262. This illustrates how Plan N provides meaningful financial protection, especially for frequent users of outpatient services.
Plan N is one of the ten standardized Medigap plans offered nationwide. It's available through private insurers and must meet federal guidelines. Premiums vary by location, insurer, and individual health history.
Plan N is often recommended for beneficiaries seeking broad coverage at a moderate premium. It offers more protection than Plans G and F, which don't cover the Part B deductible, but at a higher cost than Plans C and F, which have been phased out for new enrollees since 2020.
If you're considering Plan N, compare premiums across insurers using the Medicare Plan Finder tool. Premiums can differ by hundreds of dollars annually depending on your region and provider.
Plan N does cover the Medicare Part B deductible for most enrollees. It's a practical choice for retirees who want predictable costs and minimal surprises. But always verify your specific plan's benefits with your insurer, as wording and coverage can vary slightly between carriers.