There's a "new" plan on the block and it has very similar coverage to Plan G. If your clients are unable to purchase a Medicare Supplement Plan F due to MACRA, then you may tend to encourage them to purchase a Plan G. And that's always been a smart move. However, the differences between Plan G and Plan N are as follows:
Here's where it gets really interesting though. The vast majority of Plan N policy holders never end up paying the Part B excess charges because nearly every doctor in the U.S. (96%) who accepts Medicare, only charges the amount Medicare has approved for their services. So what does that mean? It means that your Plan N clients will likely only pay the cost-share copays and the Part B deductible.
Let's dig a little more into the Plan G vs. Plan N discussion. Due to MACRA, Plan G is now available to customers with 6 out of the 7 Guaranteed Issue rights. This will increase the pool of high-cost policy holders and place more and more pressure on insurance carriers to raise their premiums to cover those costs. Last year was the first year of newly eligible clients with this many Guaranteed Issue rights for Plan G, but every year that will steadily increase as more and more people age into Medicare. So what does this mean? It means Plan G premiums will likely increase faster than those of plans with fewer Guaranteed Issue rights, such as Plan N.
So, to wrap this up. If your clients purchase a Plan N, they will have identical coverage to Plan G, their premiums will likely not increase as quickly as those who have Plan G, and their out-of-pocket costs will be the Part B deductible and any copays they may incur. It's clearly a win/win! Consider offering Plan N Medicare Supplements to your clients; explain to them the cost differences, and how in the end, Plan N will be their better option.
Questions? Reach out to our Medicare gurus, Cassandra and Derick for more information.
Carolyn Portanova is the Director of Marketing at The Brokerage Resource and has been with the firm since 2012.