Why Medicare Plan N Might Be the Right Move in 2025 and Beyond to Combat Higher Rates

With some of the highest rate increases since 2011 for Medicare Supplement Plans F and G, many clients are starting to feel the pinch. That’s why more agents and beneficiaries are taking a closer look at Medicare Supplement Plan N—a smart, cost-effective option that balances solid coverage with lower monthly premiums.

The Rate Reality: Plans F & G

During the COVID-19 pandemic in 2020, Medicare spending dropped by 5.8% as in-person visits declined. That dip in utilization initially helped stabilize some Medicare Supplement premiums—but it didn’t last. Over time, Plan G has seen fluctuating rate increases, while Plan F continues to climb in cost due to one key reason:

• Plan F is no longer available to new enrollees, per 2020 MACRA legislation. As its risk pool ages and shrinks, rates continue to rise.

The Case for Plan N

Plan N is gaining momentum among clients who want to save money without sacrificing essential coverage.

• Lower premiums than Plan G
• Cost-sharing: up to $20 copay for doctor visits and up to $50 for ER visits
• Does not cover: Part B deductible or Part B excess charges

But here’s an important caveat: Some states do not allow excess charges (CT, MA, MN, NY, OH, PA, RI, VT). If your client lives in one of these states, they won’t need to worry about this gap in Plan N at all—giving it even more value.

Plan N vs. Plan G: Know the Key Differences

In states where excess charges apply, Plan G may make sense for high-utilization clients. But for many, Plan N’s premium savings easily offset a handful of doctor visit copays.

The Hidden Advantage: Plan N & GI Business

Another important factor? Plan N often has fewer guaranteed issue (GI) enrollees. Since GI applicants tend to have higher health care costs, this can lead to higher premiums and instability in other plans. Plan N’s limited exposure to GI traffic helps keep it more stable over time.

More Than Savings: Building Trust and Retention

When you educate your clients about Plan N, you’re doing more than offering an alternative—you’re proving that you’re looking out for their financial and health care well-being.

Lower Med Supp premiums also open the door for ancillary product conversations. That premium savings could now fund dental, vision, and hearing coverage—further boosting satisfaction and retention.

Conclusion

If your clients are:

• Upset by Plan F/G rate increases
• Leaving Medicare Advantage due to benefit reductions
• Looking for reliable coverage with lower monthly costs

Then Plan N is a conversation you need to have. It’s a smart, stable option that helps clients save money, maintain comprehensive coverage, and stay happy with you as their agent.