Plan G buys more predictability. Plan N may buy a lower premium.
Medicare Supplement Plan G and Plan N cover many of the same gaps in Original Medicare. The main differences are straightforward:
- Plan G covers Medicare Part B coinsurance after you pay the annual Part B
deductible.
- Plan N may require a copay of up to $20 for some office visits and up to $50
for some emergency room visits that do not lead to an inpatient admission.
- Plan G covers Part B excess charges. Plan N does not.
- Plan N often has a lower monthly premium, but the actual difference depends
on the company, age, location, household discounts, and rating method.
Neither plan covers the Medicare Part B deductible for people newly eligible for Medicare after January 1, 2020.
What both plans cover
Both Plan G and Plan N include the major standardized Medigap benefits, including:
- Part A hospital coinsurance and up to 365 additional hospital days after
Medicare benefits are used
- Part B coinsurance, subject to Plan N’s copay rules
- The first three pints of blood
- Part A hospice coinsurance or copayment
- Skilled nursing facility coinsurance
- The Part A deductible
- 80 percent of qualifying foreign travel emergency costs, up to plan limits
Because Medigap benefits are standardized, a Plan G from one company has the same core medical benefits as a Plan G from another company. The same is true for Plan N. Premiums, rate history, service, discounts, and underwriting can still differ.
When Plan G may make more sense
Plan G is often a comfortable fit for someone who wants fewer small bills and does not want to think about Part B excess charges. It may also fit a person who expects frequent office visits and finds the premium difference reasonable.
The tradeoff is simple: you pay the insurer more each month for a more complete set of standardized benefits.
When Plan N may make more sense
Plan N may fit someone who is comfortable paying occasional office or emergency room copays in exchange for a lower premium. It can be attractive when the premium savings are large enough to cover those possible charges with room to spare.
Do not assume Plan N always wins for a healthy person. Health can change, and switching Supplements later may require underwriting. Compare the long-term premium pattern, not just the first-year quote.
What are Part B excess charges?
An excess charge can occur when a provider does not accept Medicare assignment and is allowed to bill above the Medicare-approved amount. Plan G covers Part B excess charges. Plan N does not.
Many providers accept assignment, but you should ask. If you travel often or see several specialists, the extra layer of protection may matter more to you.
The question that usually decides it
Do not ask only, “Which premium is lower?” Ask:
“How much am I saving each year with Plan N, and what am I agreeing to pay or manage in return?”
If Plan N saves only a small amount, Plan G’s predictability may be worth the difference. If the savings are meaningful and you understand the copays and excess-charge exposure, Plan N may deserve the closer look.
Michael can compare the same letter plan across available companies and show you the actual annual difference. Call (270) 721-5069 or schedule a Plan G and Plan N comparison. You should be able to see the trade clearly before you apply.
Source: Medicare.gov’s standardized Medigap benefit chart.
We are not affiliated with or endorsed by Medicare or any government agency. This information is for educational purposes only and does not constitute financial or insurance advice. Your situation may differ from the examples given.
What clients say
Written by Michael Smith, licensed independent insurance broker and founder of Guardian Health & Wealth in Bowling Green, Kentucky.