Medicare Supplement Plan G vs. Plan N
Medicare Supplement Plan G and Plan N are the most popular Medigap plans designed to cover out-of-pocket expenses that Original Medicare does not cover. While they offer similar coverage, there are important differences between the two plans that you should consider before making a decision.
In a nutshell:
- Plan G – the most comprehensive coverage for a higher monthly premium.
- Plan N – higher out-of-pocket expenses in exchange for a lower monthly premium.
What Is Medicare Supplement Plan G?
Medicare Supplement Plan G is a top-rated plan that effectively covers the majority of out-of-pocket expenses associated with Medicare Part A and B.
Plan G: Essential Highlights
- Comprehensive coverage: Plan G covers most out-of-pocket Medicare Part A and Part B costs. This includes hospitalization costs, medical expenses, and bloodwork. It also covers skilled nursing facility care coinsurance and hospice care coinsurance.
- No network restrictions: With Plan G, you can see any doctor or specialist who accepts Medicare patients. There are no network restrictions or referrals required.
- Coverage for excess charges: Plan G covers Part B excess charges, which are the additional costs that some doctors may charge above what Medicare approves.
What Is Medicare Supplement Plan N?
Medicare Supplement Plan N also covers hospitalization costs, medical expenses, and blood services, similar to Plan G. However, Plan N does not cover Part B excess charges.
Plan N: Essential Highlights
- Comprehensive coverage: Plan N covers most out-of-pocket costs with Original Medicare, including hospitalization costs, medical expenses, and blood services. It also covers skilled nursing facility coinsurance and hospice care coinsurance.
- No network restrictions: Similar to Plan G, you can visit any doctor or specialist who accepts Medicare patients. However, in some cases, you may need referrals to see specialists.
- Cost-sharing: Plan N entails cost-sharing for specific services, such as a $20 payment for office visits and a $50 copayment for emergency room visits. Furthermore, Plan N does not provide coverage for excess charges.
What Are the Differences Between the Plans?
There are two primary distinctions between Plan N and Plan G.
- Under Plan N, you will be responsible for a maximum copay of $20 for specific office visits and $50 for emergency room visits that do not require hospitalization. Plan G does not require these copayments.
- Plan G covers Part B excess charges, which refer to the difference between a healthcare provider’s charges and what Medicare will reimburse. Plan N does not include coverage for these charges.
Which Plan Offers More Coverage?
Plan G offers more extensive coverage than Plan N, although Plan N can still provide significant coverage depending on your healthcare needs.
If you have a chronic medical condition requiring frequent hospitalization or need to visit the doctor often, Plan G may be the better choice for you.
Which Plan Is More Affordable?
Regarding monthly premiums, Plan N is generally less expensive than Plan G.
However, it’s crucial to take into account the copays highlighted earlier and assess the premiums and copays based on your anticipated healthcare needs. This will enable you to determine which plan is more cost-effective for you in the long term.
Bottom Line
Choosing between Medicare Supplement Plan G and Plan N depends mainly on your healthcare needs and financial situation.
If you expect frequent doctor visits or hospitalizations and want to avoid copays, consider Plan G. It offers comprehensive coverage and includes Part B excess charges.
Plan N might be a more cost-effective option if you’re generally healthy and don’t need frequent medical care. Plan N has lower monthly premiums, potentially leading to significant savings over time.
Sources: Compare Medigap Plans | NerdWallet Plan Comparison | Choosing a Policy
FAQs
Is Plan G better than Plan N?
Consider your healthcare needs and financial situation. If you expect regular doctor visits or hospitalizations and want to avoid copays, Plan G may offer more extensive coverage.
Is Medicare Supplement Plan N a good option?
Yes, Medicare Supplement Plan N is a highly favored and practical choice among Medicare beneficiaries.
