Do you tend to place clients in Medicare Supplement Plans C, D, F, or G? While it’s true these Med Supps cover the most out-of-pocket costs, never overlook Plans K, L, M, and N.

Read on for a closer look at each plan, how they work, and profiles of clients for whom they’d be a great fit.

Listen to this article:

Plan N

Why‘d we start with Plan N? Because it’s become an increasingly popular choice among shoppers.

Enrollees pay premiums, copays (e.g., $20 for a doctor visit, $50 for ER visits that don’t lead to inpatient admission), and a small deductible (the Part B deductible, which is $185 for 2019. In exchange, Plan N pays for 80% of foreign travel emergency costs and 100% of each of its Medigap benefits related to Medicare Part A, Part B coinsurance/copayment, blood, and skilled nursing facility care.

Premium-wise, Plan N is generally 25% less expensive than Plan F. However, unlike Plans C, F, and G, it doesn’t cover Part B excess charges.

This plan is ideal for clients who:

  • Only visit the doctor a few times a year
  • Value having a lower premium than Plan F
  • Live in states that don’t allow excess charges (CT, MA, MN, NY, OH, PA, RI, and VT)
    • In these states, individuals’ out-of-pocket costs typically just include the Part B deductible, plus any copays
    • The only difference between Plans F and N in these states is that Plan F covers the Part B deductible, while Plan N does not

Plan K

A good starting point for a healthy client, Plan K covers 100% of the Part A coinsurance and hospital costs. Additionally, it pays for 50% of each of the remaining Medigap benefits related to Medicare Part A, Part B coinsurance/copayment, blood, and skilled nursing facility care. It does not cover the Part B deductible, Part B excess charges, or foreign travel emergency costs.

Plan K pays 100% of enrollees’ Medicare-covered costs for the rest of the policy year after they meet the annual Part B deductible and the plan’s annual maximum out-of-pocket limit ($5,560 in 2019).

This plan is ideal for clients who:

  • Are aging into Medicare
  • Are accustomed to having employer coverage
  • Have out-of-pocket expenses
  • Live in states that don’t allow excess charges

Plan L

Plan L is similar to Plan K, but offers a little more protection.

Like Plan K, Plan L pays 100% of the Part A coinsurance and hospital costs and does not cover the Part B deductible, Part B excess charges, or foreign travel emergency costs.

Unlike Plan K, Plan L pays 75% of each of the remaining Medigap benefits related to Medicare Part A, Part B coinsurance/copayment, blood, and skilled nursing facility care.

Once enrollees meet the annual Part B deductible and the plan’s annual out-of-pocket maximum ($2,780 in 2019), Plan L pays 100% of their covered costs for the rest of the policy year.

This plan is ideal for clients who:

  • Have only minor health problems
  • Live in states that don’t allow excess charges

Plan M

Introduced in 2010, Plan M was created to reduce the national budget deficit and eliminate wasteful spending caused by frequent doctor visits.

It pays 100% of the Part A coinsurance, hospital costs, and hospice care coinsurance/copayment; Part B coinsurance or copayment; blood (first three pints); and skilled nursing facility care coinsurance. In addition, it pays 50% of the Part A deductible and 80% of foreign travel emergency costs.

Like the three plans above, Plan M does not cover the Part B deductible or excess charges.

This plan is ideal for clients who:

  • Don’t mind paying 50% of their hospital deductible
  • Live in states that don’t allow excess charges

Final Thoughts

Remember, your clients trust you to help them enroll in the “right” plan(s). If you sell a higher-premium, benefit-rich Med Supp plan to a client that may not need all that coverage, another agent might come along and put them in a more fitting, lower-premium plan.

Be sure to explore all your clients’ options and thoroughly compare rates in your area. You’re the expert. Continue to grow your business by showing that to those whom you advise.

● ● ●

Interested in finding out which Med Supps are the most competitive in your local market? Send us a message.