Medicare Plan G vs Plan N

Understanding Medicare Plan G vs. Plan N

When you enroll in Original Medicare (Part A and Part B), you’ll notice there are out-of-pocket costs you’re still responsible for, like deductibles, copayments, and coinsurance. Medicare Supplement (Medigap) policies are sold by private insurance companies to help pay for these remaining expenses. Plan G and Plan N are two of the most popular Medigap options available to new Medicare beneficiaries. Both are standardized, meaning the core benefits are the same regardless of which insurance company you choose, though premiums can vary.

Medicare Plan G: Comprehensive Coverage

Medicare Plan G is often considered the most comprehensive Medigap plan for newly eligible Medicare members. It covers nearly all the gaps in Original Medicare, providing a high level of predictability for your healthcare costs.
Key Benefits of Plan G:

• Part A Deductible: Covers the Medicare Part A hospital deductible in full.
• Part A Coinsurance: Pays for hospital and skilled nursing facility coinsurance.
• Part B Coinsurance/Copayment: Covers the 20% coinsurance for most doctor visits and outpatient services after your Part B deductible is met.
• Part B Excess Charges: Pays for excess charges, which are additional costs a doctor who doesn’t accept Medicare assignment can charge you.
• Foreign Travel Emergency: Provides coverage for emergency medical care when you’re traveling outside the United States.

The only significant out-of-pocket cost with Plan G is the annual Medicare Part B deductible. Once you meet that deductible, Plan G covers 100% of the remaining approved costs for Medicare-covered services.

Medicare Plan N: A Cost-Sharing Alternative

Medicare Plan N offers a great balance of coverage and lower monthly premiums. It provides extensive benefits similar to Plan G but requires you to share some of the costs for certain services. This makes it an attractive option if you’re healthy and don’t visit the doctor frequently but still want strong protection against major medical bills.
How Plan N Differs:

• Doctor’s Office Copayments: You will pay a copayment of up to $20 for some office visits.
• Emergency Room Copayments: A $50 copayment is required for emergency room visits if you aren’t admitted to the hospital.
• Part B Excess Charges: Plan N does not cover Part B excess charges. It’s important to confirm that your doctors accept Medicare assignment to avoid these extra costs.

Like Plan G, you are also responsible for the annual Part B deductible with Plan N. The lower monthly premium for Plan N reflects these cost-sharing requirements.

How to Choose Between Plan G and Plan N

Your choice depends on your budget, health needs, and how you feel about paying for services as you use them.

• Choose Plan G if: You prefer predictable, fixed healthcare costs and want the most comprehensive coverage available. It’s ideal if you want to avoid unexpected medical bills and don’t mind paying a higher monthly premium for that peace of mind.
• Choose Plan N if: You are comfortable with small copayments for doctor and ER visits and want a lower monthly premium. It’s a great option if you are in good health and your doctors accept Medicare assignment, which prevents excess charges.

For more official information on what Medigap policies cover, you can visit the official Medicare website at Medicare.gov.