Medicare Plan Options: Plan N vs. Plan F

Medicare Plan Options: Plan N vs. Plan F

When it comes to purchasing a Medicare health plan, we all agree that beneficiaries are best served working with an experienced agent to determine what product best meets his or her needs. But are we as agents giving our clients a full picture of the Medicare insurance landscape?

Most agents educate their clients on the difference between Medicare Advantage and Medicare Supplement Plan F (which accounts for about 70% of all Med Supp sales). Both are great products that fit many clients’ needs very well, but that’s where the similarities between these two product end. In fact, if you were to plot Medicare health plan costs and benefits along a spectrum, Medicare Advantage and Plan F would be at opposite ends of the spectrum. In other words, we’re asking our clients to make an “all-or-nothing” decision between two highly differentiated options. Shouldn’t we be offering something in the middle?

Medicare Supplement Plan N is often not part of this conversation, but I would argue that it should be. Plan N combines elements of both Medicare Advantage (co-pays) and Plan F (benefits beyond Original Medicare) to create a middle ground that many people are more comfortable choosing.

Below is a diagram that illustrates this spectrum, so you can help your clients narrow their choices to the plan that’s right for them.

Spectrum of Costs and Benefits