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

If you’re new to Medicare, and you’re considering a Medicare Supplement, you’re probably comparing Medicare Plan N vs. Plan G to determine which one is best for you. After all, these are the two most popular Medigap plans for new beneficiaries.

In this article, we’ll take a deep dive into Medicare Plan GIf you're turning age 65 this year, Medicare Supplement Plan G is the most comprehensive Medicare supplement you can buy. It's also the most popular. You might be thinking that Medicare Supplement Plan F is... vs Plan N to help you understand the differences.

Overview of Medicare Plan N vs Plan G

Medicare Plans G and N are supplemental Medicare insurance that you can buy to cover the most costly out-of-pocket expenses in Original Medicare, including deductiblesA deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share., coinsuranceCoinsurance is a percentage of the total you are required to pay for a medical service. , and copaymentsA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service.. Without supplemental coverage, there is no out-of-pocket maximum on these expenses. For instance, if you have an operation that costs $100,000, without supplemental coverage you will pay about $20,000.

Here are the important facts about these two plans:

1. Medicare Plan N and Plan G are Medicare Supplement plans that cover some of the costs that Original Medicare does not cover.
2. Both plans cover 100% of the Part A deductible and coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
3. Both plans cover the Part B coinsurance and/or copayment, the first three pints of blood, and Part A 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. care coinsurance or copayment. However, with Plan N you pay a copayment for doctor office visits (up to $20) and use of the emergency room (up to $50).
4. Medicare Plan G  also covers Part B excess charges, but Plan N does not.
5. Medicare Plan N and Plan G do not pay the annual Part B deductible ($226).
6. In about 98% of all areas, Medicare Plan G plus the annual Part B deductible costs less than Medicare Plan FMedicare Supplement Plan F is the most comprehensive Medicare supplement plan available. This plan covers all Original Medicare deductibles, coinsurance, and copayments, leaving you with no out-of-pocket costs on all Medicare-approved services..
7. In about 97% of all areas, Plan N rates are 20% to 30% less than Plan G.

Benefits of Plan N vs Plan G

The best way to understand Medicare Plan N vs Medicare Plan G, and 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 coinsurance ($400 to $800 per day after 60 days), skilled nursing facility coinsurance ($200 per day after 60 days), first three pints of blood, hospice care coinsurance, and foreign travel emergencies.

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

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

Cost Comparison of Plan N vs Plan G?

The big benefit of Medicare 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.

In most areas, Plan N policies start at less than $100 per month. 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). However, the cost reduction is not free.

Also See: Medicare Plan G Pros and Cons

Coverage Gaps of Medicare Plan G vs Plan N

The purpose of 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. is coverage of the out-of-pocket expenses built into Original Medicare. For this reason, it’s worth highlighting the exact gaps covered in each of these plans. It also makes them easier to compare.

Plan G is easy to explain because it covers all gaps except one. It does not cover the annual Part B deductible. With a Plan G policy, you will pay all outpatient costs until the annual deductible is met. All other deductibles, copayments, and coinsurance costs are fully covered.

Plan N is a little more complex. Like Plan G, it covers all of the major gaps. But, there are two 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..

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 has a second gap that’s covered by Plan G. It 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). Plan G fully covers these costs.

Additional Benefits

Unlike 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)., Medicare Supplements are not allowed to include additional benefits, such as coverage of prescription drugs. There is one exceptionIn a Medicare Part D plan, an exception is a type of prescription drug coverage determination. You must request an exception, and your doctor must send a supporting statement explaining the medical reason for the..., foreign travel emergencies.

Original Medicare covers you wherever you go in the United States and its territories. However, with rare exceptions, it does not you outside of the United States. However, Medicare Plans G and N both include foreign travel emergency coverage, as do Plans C, D, F, and M.

If you have Plan G or N and need medical care while traveling abroad, these plans cover up to 80% of your costs. This coverage is not available through a Medicare Advantage plan.

Enrollment Process

Unlike Medicare Advantage and 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... plans, Medicare Supplements do not have an annual enrollment periodThe Annual Enrollment Period is when Medicare beneficiaries can join, drop or change Medicare Advantage and Medicare Part D prescription drug plans. AEP begins on 15 October and ends on 7 December.. In most states, you are free to enroll and disenroll at any time. However, there are certain benefits to enroll when first eligible.

Most of us are eligible to buy Medigap insurance at age 65 when we initially sign up for 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. and Part B. This Initial Enrollment PeriodThe Initial Enrollment Period is a seven-month period when new beneficiaries can enroll in Medicare without a penalty. Most people enroll in Medicare at age 65. automatically starts a six-month clock, which is known as 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.. It begins the first month you have Medicare Part B.

During your Medigap Open Enrollment periodDuring the Medicare Open Enrollment Period, Medicare Advantage and Part D plan members can change, switch, or drop a plan they chose during the Annual Election Period. OEP starts on January 1 and ends on March 31. you have certain Medigap protections. The most important protection is a guaranteed issue right, which allows you to buy the plan of your choice from your preferred insurance carrier. In other words, companies selling Medigap policies must accept an application from anyone who applies while they have their guaranteed issue right.

The application process, while you’re in your Medigap Open EnrollmentIn health insurance, open enrollment is a period during which a person may enroll in or change their selection of health plan benefits. Health plan enrollment is ordinarily subject to restrictions. Period, is very simple. But you do need to go through a licensed insurance agent to submit your application. You can do this once you sign up for both Medicare Part A and Part B, and have your Medicare number.

After your Medigap Open Enrollment Period expires, the application process is more complicated and an insurance company has the right to turn you down. It’s very important not to be late.

Also See: Why Can You be Denied a Medicare Supplement Plan?

Can You Change From Plan N to 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 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.

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.

Are They Better Than a Medicare Advantage Plan?

Medicare Advantage plans are the private health insurance alternative 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 deductibles, coinsurance, copayments, and other shared costs. 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 D plan to get prescription drug coverage and a separate dental plan for routine dental care.

Related: https://medicarewire.com/blog/disadvantages-of-medigap-plans/

Who Should Get Plan N vs 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.

As mentioned earlier, Medicare Supplements do not cover the cost of your prescription drugs. To get this coverage you need to add a stand-alone Medicare Part D Plan (PDP). You can research these plans on this page: https://MedicareWire.com/medicare-part-d/.

What Do You Do If You Want to Save More Money?

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.

Speak with Your Agent

It’s important to have a candid conversation with your insurance agent about your health and financial situation. Don’t make this important decision alone. Ask your agent if a Medigap policy is right for you. Be specific and ask about hospital stays, long-term carea variety of services that help people with their medical and non-medical needs over a period of time. Long-term care can be provided at home, in the community, or in various types of facilities, including..., and other important insurance topics. If you don’t have an agent, or you want a second opinion, Call 1-855-728-0510 (TTY 711) and speak with a licensed HealthCompare insurance agent. There’s no obligation, and they offer more plan options than any other national agency.

Frequently Asked Questions

Do you know the answer to these popular questions?

Citations & References:

cms.gov

• 2023 Medicare Parts A & B Premiums and Deductibles | CMS
  https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly
• Trump Administration Announces Historically Low Premiums and New Insulin Benefit as Medicare Open Enrollment Begins | CMS
  https://www.cms.gov/newsroom/press-releases/trump-administration-announces-historically-low-premiums-and-new-insulin-benefit-medicare-open
• Institutional Special Needs Plans (I-SNPs) | CMS
  https://www.cms.gov/Medicare/Health-Plans/

medicare.gov

• Medicare costs at a glance | Medicare https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance
• How to compare Medigap policies | Medicare https://www.medicare.gov/supplements-other-insurance/how-to-compare-medigap-p…
• https://www.medicare.gov/supplement-other-insurance/compare-medigap/compare-m…
• What’s Medicare Supplement Insurance (Medigap)? | Medicare
  https://www.medicare.gov/supplements-other-insurance/whats-medicare-supplement-insurance-medigap
• Medicare Advantage Plans | Medicare
  https://www.medicare.gov/sign-up-change-plans/types-of-medicare-health-plans/medicare-advantage-plans

kff.org

• A Dozen Facts About Medicare Advantage in 2019 | KFF
  https://www.kff.org/medicare/issue-brief/a-dozen-facts-about-medicare-advantage-in-2019/
• Sources of Supplemental Coverage Among Medicare Beneficiaries in 2016 | KFF
  https://www.kff.org/medicare/issue-brief/sources-of-supplemental-coverage-among-medicare-beneficiaries-in-2016/
• Medicare Advantage | KFF
  https://www.kff.org/medicare/fact-sheet/medicare-advantage/

shiptacenter.org

• Home | State Health Insurance Assistance Programs http://www.shiptacenter.org/

cdc.gov

• FastStats – Hospital Utilization http://www.cdc.gov/nchs/fastats/hospital.htm
• NCHS Pressroom – 2008 Press Release – Ambulatory Medical Care Utilization Est… http://www.cdc.gov/nchs/pressroom/08newsreleases/visitstodoctor.htm