Plan N is a Medicare Supplement that offers lower premiums, minimal cost sharing, and comprehensive coverage. With rising costs for Plan F and Plan G, you may need to look at some other options to keep your clients satisfied with their health care.
Find out why Plan N might be a good choice for many of your Medicare Supplement clients this year!
Visit RitterIM.com/events to register for Integrity’s next Plan N for the Win webinar or to check out all of our upcoming trainings on new products, tools, or methods to grow your business!
Rate Increases for Plans F & G
When the COVID pandemic hit in 2020, Medicare spending fell by 5.8 percent as utilization of in-person physician services plummeted. In response, Plan G experienced fluctuations including modest rate increases and, in some cases, even rate decreases.
“In late 2022 and 2023, beneficiaries who put off procedures during the pandemic began to file more claims than the market was prepared for. Premium rates may also follow suit, and a market reset seems likely.” - Ted Sims, Integrity’s Partner Sales Manager
Additionally, Plan F is no longer available to new enrollees due to 2020 MACRA changes. Its limited availability has also led plan rates to increase.
As rates increase, more and more of your clients with Med Supps may be looking for better coverage and more affordable premiums.
For example, Plan F and Plan G proposed rate increases for carriers like UnitedHealthcare increased as much as 14.9 percent in 2024.
What Can Agents Expect?
As rates increase, more and more of your clients with Med Supps may be looking for better coverage and more affordable premiums. Make sure you’re in the position to help them by having Plan N in your portfolio.
You can speak with a sales specialist to see what Plan N is competitive near you!
Affordability of Plan N
Plan N offers lower monthly premiums but involves out-of-pocket costs, such as copayments for doctor visits and emergency room services. It doesn’t cover the Medicare Part B deductible or excess charges, making it ideal for individuals who are comfortable with some cost-sharing in exchange for lower premiums. However, you may live in a state that doesn’t allow excess charges (CT, MA, MN, NY, OH, PA, RI, and VT). If so, your client won’t have to worry about additional fees for services not fully covered by Medicare.
The key difference between Plan N and Plan G is how they handle out-of-pocket costs. Plan G covers nearly all Medicare gaps, including Part B excess charges. This means beneficiaries don’t pay additional fees for doctors who charge more than Medicare-approved amounts. If your client lives in a state that allows excess charges (all states except CT, MA, MN, NY, OH, PA, RI, and VT), then Plan G may be worth the extra premium.
When considering if Plan N is more affordable than Plan G, it’s important to note that Plan is also typically shielded from guaranteed issue (GI) enrollees, while Plan G is not. (Plan N complies with birthday rule in applicable states.) GI enrollees may be less healthy, which means more claims and higher premiums. Low to no GI enrollees could mean more stability of premiums for Plan N.
Plan N vs. Plan G
1https://www.valuepenguin.com/medicare-plan-n
2Beneficiaries pay 20% coinsurance or $20 for doctor/$50 for ER visits, whichever is lower. ER copay will be waived if beneficiary is admitted.
Someone on Plan N could save as much as $444 every year in premium!
As you can see, someone on Plan N could save as much as $444 every year in premium. That’s about 22 Plan N doctor visit copays! Your client could be a better fit for Plan G if they visit the doctor or emergency room frequently, but it would take a lot of visits to outweigh the premium cost-saving benefits of Plan N.
Driving Higher Client Retention & Satisfaction
Once you understand what makes Plan N a winning option, you can really help your clients save money and feel more at ease and content with their coverage. By educating your clients on Plan N and how it could potentially save them money, you’re showing them that you have their best interest in mind. If you have clients frustrated by Plan F, Plan G, or Medicare Advantage (MA) rate increases or moving away from MA due to benefit reductions, Plan N could provide a stable and affordable solution.
Additionally, when clients have lower premiums for Med Supps, there could be more room for ancillary insurance protection and ancillary sales growth. With cost savings, your clients might be able to enroll in other important coverage like dental, vision, and hearing plans.
Ultimately, clients feeling satisfied with your services could lead to them sticking with you for all their insurance needs. Since beneficiaries could pay less premium with Plan N, this could give them greater peace of mind, health care, and overall financial stability.
Since beneficiaries could pay less premium with Plan N, this could give them greater peace of mind, health care, and overall financial stability.
Plan N is becoming an attractive option for clients seeking lower premiums and manageable cost-sharing. Educating clients about this option can enhance their satisfaction, build trust, and drive client retention by showing that you prioritize their financial and health care needs.
Want to learn more about the opportunities for selling Plan N this year? Reach out to your Ritter sales specialist. If you aren’t already partnered with Ritter, take the leap and register for free today!
Not affiliated with or endorsed by Medicare or any government agency.
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