Medicare Plan N vs Plan G: Which Supplement is Best for You?

If you’re about to sign up for Medicare, and you’re considering a Medicare Supplement plan, you might be wondering how Plan N stacks up to Plan G. After all these are the two most popular Medicare Supplement plans for new Medicare beneficiaries.

In this article, we’ll take a deep dive into both of these plans. If you want to know which Medicare Supplement is right for you, you’re in the right place.

What is the N Plan in Medicare?

Medicare Part AMedicare Part A is hospital coverage for Medicare beneficiaries. It covers inpatient care in hospitals and skilled nursing facilities. It also covers limited home healthcare services and hospice care. (hospital insurance) and Medicare Part BMedicare Part B is medical coverage for people with Original Medicare benefits. It covers doctor visits, preventative care, tests, durable medical equipment, and supplies. Medicare Part B pays 80 percent of most medically necessary healthcare services. (medical insurance) cover about 80% of all Medicare-approved costs. The other 20% is the Medicare beneficiary’s responsibility.

There are different ways people on Medicare cover their 20% share, including:

• Directly out-of-pocket.
• Using retiree healthcare benefits.
• Using MedicaidMedicaid is a public health insurance program that provides health care coverage to low-income families and individuals in the United States. or VA healthcare benefits.
• Buying Medicare Supplement InsuranceMedicare Supplements are additional insurance policies that Medicare beneficiaries can purchase to cover the gaps in their Original Medicare (Medicare Part A and Medicare Part B) health insurance coverage. plans.

Medigap, also known as Medicare Supplement Insurance, is a set of 10 standardized plans. Each plan has a different letter code, A through N.

Medicare Parts vs. Plans

It’s easy to confuse Medicare’s parts (Medicare coverage) with Medigap plans. But they are not the same. Plans come from private insurance companies and cover the gaps in Medicare Parts A and B.

The N plan is the newest of the 10 standardized plans. Its popularity is rapidly growing because it helps people save money.

What is the Difference Between Medicare Plan G and N?

An easy way to compare all Medicare Supplement plans is to take a look at a chart:

Using this chart, you can quickly see that Plan G Medigap policies have more comprehensive coverage. Each out-of-pocket cost is a gap in coverage, and Plan N has a few.

Both Plan G and Plan N cover the major cost gaps. These include the Part A deductible ($1,600) , Part A coinsuranceCoinsurance is a percentage of the total you are required to pay for a medical service.  ($400 to $800 per day after 60 days), skilled nursing facility coinsurance ($200 per day after 60 days), first three pints of blood, hospiceHospice is a special way of caring for people who are terminally ill. Hospice care involves a team-oriented approach that addresses the medical, physical, social, emotional, and spiritual needs of the patient. coinsurance, and foreign travel emergencies.

Where these two plans differ is how they cover minor cost gaps. These include the Medicare Part B coinsurance and Part B excess charges.

Plan G covers both of these Part B out-of-pocket costs completely. Plan N doesn’t.

If you buy a Plan N policy, you pay a $20 copayment for most doctor visits. And, there’s a $50 copay for an emergency room visit. Other than that, Plan N covers all Medicare Part B coinsurance costs, up to the Medicare-approved amountA Medicare-approved amount is what Medicare will pay for a covered service. Healthcare providers that agree to Medicare assignment accept the approved amount without excess charges. What Does Medicare-Approved Amount Mean? A Medicare-approved amount is..., including medical supplies, tests, and durable medical equipmentDurable medical equipment (DME) is equipment that is designed to last and can be used repeatedly. It is suitable for home use and includes wheelchairs, oxygen equipment, and hospital beds..

Plan N does not cover any portion of Medicare Part B excess chargesA Medicare Part B excess charge is the difference between a health care provider’s actual charge and Medicare’s approved amount for payment.. Exactly what are Part B excess charges? They are additional costs – up to 15% extra – that doctors and other healthcare providers can add to your bill if they do not accept Medicare assignmentAn agreement by your doctor to be paid directly by Medicare, to accept the payment amount Medicare approves for the service, and not to bill you for any more than the Medicare deductible and coinsurance. (Medicare’s standard rates).

How Much Does Plan N Cost vs Plan G?

The big benefit of Plan N vs Plan G is the monthly premium. In most areas, you can get into a Plan N policy at age 65 for 20% to 30% less than Plan G.

So, if you’re in an area where Plan G policies start at around $110 to $120 per month, you can get a Plan N policy for around $80 to $90 per month.

Even in high-cost states, like Florida, you can get a Medicare Supplement Plan NMedicare Supplemental Plan N is one of the ten standardized Medigap plans. Although it is one of the newest plans available, Medicare Plan N is quickly becoming a favorite with Baby Boomers aging into their... starting at around $130 per month (65-year-old, non-smoking female, living in Tampa, Florida on 1/1/2023).

Can You Change From Plan N to Plan G?

Once you have a plan, you may or may not be able to make a change.

• If you are within your Medigap Open Enrollment PeriodUpon initial enrollment in Medicare Part A and Part B, beneficiaries have a one-time, six-month period to buy a  Medicare supplement policy with guaranteed issue rights. This is the Medigap Open Enrollment Period., you can change plans.
• If you do not have a pre-existing conditionA pre-existing condition is any health problem that occurred before enrolling in a health plan. The Affordable Care Act law made it illegal for health plans to or charge more due to a pre-existing condition...., you might be able to change plans.

Generally speaking, the only time you are guaranteed the right to change plans is when you first sign up for Medicare. During the first six months after signing up, you have guaranteed issue rightsGuaranteed-issue is a right granted to Medicare beneficiaries and applies to Medicare Supplement insurance (aka, Medigap plans). All states and the federal government enforce this essential right, which protects Medicare beneficiaries from medical underwriting.. If you got a Plan N and then decide you want Plan G, you can switch.

After your guaranteed issue rights expire, insurance companies have no obligation to issue you a policy. This includes switching from one plan to another. They can deny you coverage.

RELATED: Why Can You be Denied a Medicare Supplement Plan?

Most insurance companies don’t like it when you want to switch to a plan with more coverage. It makes them wonder why you suddenly need more coverage.

Is Plan N Better Than a Medicare Advantage Plan?

Medicare Advantage plansMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B). are a private health insurance option to traditional MedicareOriginal Medicare is private fee-for-service health insurance for people on Medicare. It has two parts. Part A is hospital coverage. Part B is medical coverage.. These plans cover all of your Part A and Part B benefits, and most have additional benefits, such as prescription drug coverage.

What a Medicare Advantage plan doesn’t do is cover cost gaps from doctor office visits and hospitalization. With these plans, you may get extra benefits, but you still have deductiblesA deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share., coinsurance, copaymentsA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service., and other shared costsAn amount patients pay for their share of the cost of medical service or supply, like a doctor’s visit, hospital inpatient visit, or prescription drug.. These don’t go away.

As a result, a private Medicare plan could end up costing you more money than Original Medicare benefits without a Medicare Supplement plan. This is why people who can afford the monthly premiumsA premium is an amount that an insurance policyholder must pay for coverage. Premiums are typically paid on a monthly basis. In the federal Medicare program, there are four different types of premiums.  buy a Plan G or Plan N policy.

The only way to decide which is better is to ask yourself these questions:

• Do you care more about additional benefits or out-of-pocket costs when you use healthcare services?
• Can you afford your healthcare out-of-pocket costs without additional insurance?

When you choose Medigap Plan G or Plan N, you can add a Medicare Part DMedicare Part D plans are an option Medicare beneficiaries can use to get prescription drug coverage. Part D plans provide cost-sharing on covered medications in four different phases: deductible, initial coverage, coverage gap, and catastrophic. Each... plan to get prescription drug coverage and a separate dental plan for routine dental care.

Who Should Get Plan N vs Plan G?

Medigap Plan N is an excellent option for healthy people who want to save a little money. Think about it, if a Plan N policy saves you $30 per month, and you have the plan for 25 years, you save $9,000. It would take a lot of $20 copays and excess charges to make up that much money.

If you have one or more chronic health conditions that require regular doctor visits, particularly with a specialist, Plan N isn’t the best choice. In this case, Plan G is a better option.

It all boils down to your use of healthcare services. The less you use, the more you will save with Plan N. The more you use, the more you will benefit from Plan G.

What Else to Consider

Generally speaking, it’s better to buy more insurance (rather than less) when you first get your Medicare benefits. There’s less resistance to people who want to buy a policy with less coverage in the future.

Also, don’t forget that the federal Medicare programMedicare is a federal health insurance program for people ages 65 and older and people with certain disabilities. only guarantees you can get a policy when you first signup for Medicare. After that, a new application for Medigap coverage will go through medical underwriting.

When we retire, most of us are on a fixed income. If you didn’t plan ahead for the cost of healthcare in retirement, Medicare Supplement plans might appear to be an unaffordable expense.

So are the costs of skilled nursing facility care, emergency room visits, and outpatient services. Particularly if you see your doctor frequently. You need to carefully consider what your current health dictates and what might happen in the future.

What Do You Do If You Want to Save More Money Than Plan N?

Plan N is a good way to save some money on monthly premiums. However, if you are healthy, and you can afford to take a little more risk, there are two more cost-saving plans.

Plan K is a cost-sharing plan. You pay 50% of most Part A and Part B costs until your annual out-of-pocket costs reach $6,940. These plans start at around $50 per month in most areas.

RELATED: How Does the Plan K Medicare Supplement Work?

The other cost-saving plan is High Deductible Medicare Supplement Plan G (HDG). This policy is exactly the same as the standard G plan once you’ve paid the annual deductible. This year the deductible is $2,490.

HDG plans are right around the same amount as Plan K. Sometimes a little less.

If you’re looking at Plan K’s $6,940 limit vs. HDG’s $2,490 deductible and wonder which might be the best Medicare Supplement for you, consider having this discussion with a licensed insurance agent who can walk you through the pros and cons of each.