Medicare Plan N vs Plan G

Medicare offers 10 supplement insurance plans to help cover the out-of-pocket expenses required by Original Medicare (which is made up of Medicare Part A and Part B). Among these Medicare Supplement, or “Medigap,” plans Plan N and Plan G each stand out as popular choices. 

This article compares the pros and cons of Plan G vs. Plan N, comparing their coverage, costs, eligibility rules and more, to help you decide which is best suited for your needs.

What Is the Difference Between Plan G and N?

Both Plan G and Plan N are Medicare-approved private supplement insurance plans that provide extensive cost coverage beyond basic Medicare.

Plan G and Plan N each cover out-of-pocket costs that Original Medicare doesn’t cover, such as:

• Medicare Part A coinsurance and hospital costs
• Part A deductible
• Part A hospice care coinsurance or copayments
• Skilled nursing facility care coinsurance
• Part B coinsurance or copayments
• The first three pints of blood needed for a blood transfusion
• Foreign travel emergency care 

The plan comparison chart below highlights the benefits of each plan.

As you can see from the chart above, the primary difference between Plan G and Plan N lies in how they handle Medicare Part B excess charges and copayments. 

Medicare Part B Excess Charges

Plan G covers Medicare excess charges, which occur when a doctor is allowed to charge up to 15% more than what Medicare reimburses for a product or service.

Plan N does not cover Part B excess charges, and you would have to pay the difference out of pocket if you have Plan N and visit a doctor who charges these costs.

Part B Copayments

With Plan N, you may have to pay a copayment of up to $20 for doctor’s office visits and up to $50 for emergency room visits that don’t result in admission. Plan G, however, doesn't require these copays.

Plan G Vs Plan N Cost

The average monthly premium for Plan G was $135 in 2023, while the average Plan N premium was $110 per month.²

Typically, Plan G has higher monthly premiums than Plan N due to its more extensive coverage. But Plan N may lead to more out-of-pocket expenses due to copayments and potential excess charges.

The overall cost should be considered in the context of healthcare needs. Despite its higher average premiums, Plan G may be more cost-effective in the long run for those requiring frequent care.

What Are the Disadvantages of Plan N?

While Plan N is often more affordable in terms of premium costs, it does come with certain disadvantages:

• Excess Charges
  As mentioned earlier, Plan N does not cover Part B excess charges. If your healthcare provider does not accept Medicare assignment, you could be responsible for these additional costs.
  
  
• Copayments
  The requirement to pay copayments for doctor’s office and emergency room visits can add up, especially if you frequently require medical attention.
  
  
• Availability
  Medigap Plan G is sold by 75% of insurance companies that offer Medicare Supplement insurance, while Medigap Plan N is sold by 67% of such companies.¹

Is Plan G The Best?

Plan G is often considered the superior choice for some beneficiaries due to several reasons:

• Comprehensive Coverage
  Plan G covers more gaps in Original Medicare’s out-of-pocket costs than Plan N and any other Medigap plan available to beneficiaries who became eligible for Medicare after January 1, 2020.
  
  
• Predictability
  With Plan G, you are less likely to encounter unexpected out-of-pocket expenses, as it covers more of the out-of-pocket costs mentioned above.
  
  
• Portability
  Plan G’s coverage of Part B excess charges allows you to more freely visit doctors who do not accept Medicare assignment. Be sure to speak with your provider, however, before getting any health care services. It’s important to understand how Medicare will cover your procedure or service and its associated costs before you get treatment.
  
  
• Long-term Savings
  Though the premiums may be higher for Plan G than Plan N on average, Plan G could save you money in the long run, especially if you require frequent medical care or if your providers charge Medicare Part B excess charges.

32% of Medigap beneficiaries are enrolled in Plan G, compared to the 10% of Medigap beneficiaries who are enrolled in Plan N.¹

Can I Switch From Plan N to Plan G?

Switching from Plan N to Plan G is possible, but may require you to go through medical underwriting if you are outside of your Medigap Open Enrollment Period or if you don’t have guaranteed issue rights.

The underwriting process allows insurers to use pre-existing conditions or generally poor health to charge you higher premiums or even deny you a policy entirely. Some states have additional protections that allow beneficiaries to switch Medigap plans without medical underwriting in certain situations.   

Plan G Vs. Plan N Eligibility

Both plans require you to be enrolled in both Medicare Part A and Part B in order to be eligible. And you may only enrolled in a Medigap plan that is sold in the area of your primary residence.

Choosing between Medigap Plan N and Plan G depends on your health care needs, financial situation, and preference for predictable costs versus lower premiums. Both plans offer valuable coverage beyond Original Medicare, making them excellent choices for supplementing your health care coverage. 

Speak to a licensed insurance professional today to help you make an informed decision about the right Medicare Supplement plan for your needs.