As of June 2010 there are two new Medicare supplement plans M and N. But it’s the Plan N that is quickly filling a void in the senior insurance market.

Plan N is becoming one of the most attractive products primarily because of its affordability. It requires clients to share the cost of their Medicare Part B doctors’ office and emergency room visits – a familiar feature to Medicare Advantage plan members.

But, unlike a Medicare Advantage Plan, Plan N has no network restrictions, doesn’t require referrals and has lower out-of-pocket cost-sharing. These features make it more appealing to those who are healthy and wouldn’t otherwise see the need for health insurance.

As with any new product, we’re all adapting to the change. Based on common questions about Plan N, we’ve compiled the following information to help you understand what it covers.

Plan N covers: Medicare Basic Benefits, all of the Medicare Part A deductible, Skilled Nursing Facility coinsurance and Foreign travel emergency care (same benefits as Plans C, D, E, G).

However, Plan N does not pay the Part B Medicare deductible or the Part B excess charge.

Plan N requires policyholders to pay up to $20 for Medicare Part B doctors’ office visits and $50 for Part B emergency room visits.

Plan N has limited underwriting in the 29 states that don’t require medical underwriting, which includes North Carolina. It is not guaranteed issue (except during open enrollment).

No health questions will be asked for Plan N in North Carolina. A tobacco-usage question will be asked but only for calculating rate, it isn’t used to deny coverage.

Now Plan J clients may convert to Plan N without underwriting (no health questions).

Terri Powell Herlica of the Professional Service Group, LLC can be reached at terri.herlica1@gmail.com or (336) 987-2372

Information used in this article was taken from the July 2010 issued of “mutual matters” a Mutual of Omaha Publication. Neither Herlica nor Mutual of Omaha is an employee or affiliate of the Federal Medicare Program.