AARP Medicare Plan N: What You Need to Know Before You Enroll

AARP Medicare Plan N at a Glance

AARP Medicare Plan N is a Medigap policy that helps fill gaps in Original Medicare (Part A and Part B). It covers hospital coinsurance, skilled nursing facility coinsurance, and the first three pints of blood. It also covers Part A hospice coinsurance and copayments. Plan N requires copays for outpatient visits, typically up to a yearly cap, and a copay for emergency room visits that do not result in an inpatient admission. It does not cover the Medicare Part B excess charge, which is the difference between what a doctor charges and what Medicare approves in certain states.

What Plan N Covers and What It Does Not

Plan N is standardized, meaning the core benefits are the same regardless of the insurance company. However, insurers can charge different premiums and may offer extra perks like fitness programs or dental vision discounts through the AARP brand. Core Plan N benefits include: Part A hospital coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used; Part B coinsurance or copayment; blood transfusion costs for the first three pints; skilled nursing facility coinsurance; and Part A hospice coinsurance or copayment. It does not cover the Part B excess charge, which can be a significant out-of-pocket cost in states that allow it, or any services Medicare does not cover at all.

How Plan N Costs Work

Plan N premiums vary by insurer, age, location, and whether you use tobacco. Because Plan N has copays for doctor visits and emergency rooms, your total out-of-pocket spending depends on how often you see a provider. Some people choose Plan N over Plan G because the premium is often lower, but you pay more at the point of service. Plan N does not have a yearly out-of-pocket limit like Medicare Advantage plans do. You are responsible for the copays until you reach the Plan N annual cap on outpatient copays, which applies only to covered Medicare Part B services.

Plan N vs Other Medigap Plans

Plan N is often compared to Plan G and Plan F. Plan F covers the Part B excess charge and has no copays, but it is no longer available to people who became eligible for Medicare on or after January 1, 2020. Plan G offers similar coverage to Plan F but requires you to pay the annual Part B deductible yourself. Plan N typically has the lowest premium of the three, but you trade that for copays on outpatient visits and emergency room trips. If you rarely see a doctor, Plan N can be a cost-effective choice. If you have frequent medical needs, Plan G may save you money overall despite the higher premium.

How to Enroll in AARP Medicare Plan N

AARP Medicare plans are sold through private insurers like UnitedHealthcare and New York Life, among others. You can enroll during your Medigap open enrollment period, which starts the first month you are 65 or older and enrolled in Medicare Part B. During this period, insurers cannot deny you coverage or charge more based on health history. You can also compare plans and premiums through the AARP website or your state insurance department. Check whether your doctors accept Medicare assignment before choosing Plan N, since you will be responsible for the Part B copay at each visit.