Plan G vs. Plan N

Why these two plans

If you are shopping for a Medigap plan today, Plan G and Plan N are the two options you will hear about most often, and many people enrolling in Medicare Supplement coverage today choose one of the two.

Both plans cover the major gaps in Original Medicare. The difference comes down to a trade-off: how much you pay each month versus how much you pay when you use care.

What Plan G covers

Plan G covers nearly all of the out-of-pocket costs that Original Medicare leaves behind. Specifically, it helps pay for:

• Part A coinsurance and hospital costs
• Part A deductible
• Part B coinsurance (the 20% you would normally owe)
• Part B excess charges
• Skilled nursing facility coinsurance
• Part A hospice care coinsurance
• Blood (first three pints)
• Foreign travel emergency care (up to plan limits)

The one thing Plan G does not cover is the annual Part B deductible, an amount Medicare sets each year. You pay that amount out of pocket before Plan G begins covering your Part B coinsurance.

After you meet the Part B deductible, Plan G generally leaves you with little to no additional cost-sharing for covered services.

What Plan N covers

Plan N covers many of the same items as Plan G, but with two differences:

1. Plan N does not cover Part B excess charges. Excess charges occur when a provider charges more than the Medicare-approved amount. In practice, most providers accept Medicare assignment (the approved amount), so this situation is uncommon — but it can happen.

2. Plan N has small copayments for certain visits. You may owe a copayment of up to $20 for some office visits and up to $50 for emergency room visits that do not result in an inpatient admission. These are maximum amounts set by the plan structure.

Like Plan G, Plan N does not cover the annual Part B deductible.

The trade-off

The core trade-off is straightforward:

• Plan G generally has a higher monthly premium but lower out-of-pocket costs when you use care. After the Part B deductible, you typically owe nothing else for covered services.

• Plan N generally has a lower monthly premium but small copayments at the point of care. You save on the monthly bill but pay a little when you visit the doctor or use the emergency room without being admitted.

How to think about which one fits

There is no universal right answer. The better choice depends on how you use healthcare and how you prefer to budget.

Plan G may be a better fit if:

• You see doctors frequently
• You prefer predictable costs with minimal surprises
• You want the simplest billing experience after meeting the Part B deductible
• You see providers who may not accept Medicare assignment

Plan N may be a better fit if:

• You are generally healthy and do not visit the doctor often
• You are comfortable with occasional small copayments
• You want to keep your monthly premium lower
• Your providers accept Medicare assignment (most do)

A note about premiums

Because Medigap plans are standardized, the benefits for Plan G are the same no matter which company sells it. The same is true for Plan N. What varies is the premium.

Premiums can differ significantly between insurance companies, and they can also vary based on factors like your age, where you live, and how the company prices its plans. Comparing quotes from several companies for the same plan letter is a practical step.

Neither plan covers prescriptions

Neither Plan G nor Plan N covers prescription drugs. If you need drug coverage, a separate prescription drug plan handles that.

Want to talk it through?

Choosing between Plan G and Plan N does not have to be complicated. I can walk you through the numbers for your situation and help you see which trade-off makes more sense. Get in touch — no pressure, no obligation.