Medigap Plan G vs. Plan N: Which Is Best?

Medicare supplemental insurance, commonly called “Medigap,” helps cover some of the remaining costs not covered under original Medicare Part A and Part B. Medigap Plan G vs. Plan N are popular plans people choose between. These insurance plans offer excellent coverage options for seniors who need additional help with their healthcare costs.

When choosing between Medigap Plan G and Plan N, seniors should consider the benefits each plan offers and how much they are willing to pay for coverage.

• Plan G covers most out-of-pocket expenses associated with Medicare Part A and B. It also covers costs for hospital stays beyond what is paid by Medicare Part A, Medicare Part B coinsurance or copayments, and Part B excess charges.
• Plan N, on the other hand, offers coverage for Part A coinsurance, Part B coinsurance or copayments, blood transfusions up to 3 pints per year, and hospice care coinsurance or copayment. It does not cover any additional expenses beyond what Medicare Supplement Plan G covers. Also, with Medigap Plan N, there may be a copayment of $20 when you visit the doctor or $50 when you visit the Emergency Room.

What Do Medigap Plan G And Plan N Have In Common?

Before discussing what makes Plan G and Plan N different, let’s start with what makes them similar. We want to cover a few benefits that Medigap Plan G and Plan N cover, which are most commonly used and asked about.

• Medicare Part A Hospital Coinsurance: Medicare Part A is most commonly used for inpatient services like coinsurance and hospital costs. Plan G and Plan N cover these expenses after your initial Medicare benefits are exhausted.
• Skilled Nursing Facility Coinsurance: Plan G and Plan N cover the coinsurance for Skilled Nursing Facility care, as Medicare will require coinsurance after day 21. This coinsurance in 2023 starts at $200.
• Medicare Part A Hospice Care Coinsurance or Copayment: Plan G and Plan N help pay for Hospice Care coinsurance or copayments, offering financial relief during such a difficult time.
• Medicare Part A Deductible: For 2023, Medicare Part A deductible is $1,600. Plan G and Plan N will cover the Medicare Part A deductible, ensuring you won’t have to pay this substantial upfront cost.

What Benefits Are Different Between Medigap Plan G And Plan N?

Now that we have reviewed the benefits that Plan G and Plan N have in common let’s discuss where Plan N and Plan G differ.

Part B Excess Charge Coverage

One of the primary differences between Plan G and Plan N is how they handle Medicare Part B Excess Charges. Part B Excess Charges occur when a healthcare provider charges more than the Medicare-approved amount because the provider does not accept Medicare’s payments. Medicare caps this charge at 15%. Plan G fully covers these charges, meaning you won’t have to pay anything out of pocket. On the other hand, Plan N doesn’t cover Part B excess charges, which means you may be responsible for paying these additional fees.

Part B Coinsurance Coverage

Plan G and Plan N cover the Medicare Part B coinsurance, which is 20% of the bill. However, Plan N requires you to pay a copayment. For office visits, you’ll pay up to $20; for emergency room visits that don’t result in inpatient admission, you’ll pay up to $50. Plan G. On the other hand, Plan G covers these costs entirely, leaving you with no copayments for these services.

What’s The Cost Comparison Between Plan G And Plan N?

When selecting a plan, selecting a plan that supports your health needs is crucial. We also know that cost plays a significant role in choosing the right plan. The premiums, deductibles, and out-of-pocket expenses can vary between Plan G and Plan N.

Let’s look at how Plan G and Plan N differ in cost:

• Plan G generally has higher monthly premiums, usually $145 a month on average. Plan G will cover more out-of-pocket costs, such as Part B Excess Charges and copayments for office and emergency room visits. While your monthly premium may be higher with Plan G, you may have fewer unexpected costs when you need medical care, including the 20% Medicare copayment you must pay.
• Plan N, on the other hand, typically has lower monthly premiums, starting at $111 a month on average. Plan N might be a more cost-effective option. Plan N’s premium is lower as it gives trade-offs of having to pay copayments for some medical services, like office and emergency room visits. For those looking to have similar coverage to Plan G, with relatively few healthcare visits and flexible paying copayments, Plan N may be for you.

Which Should I Choose: Plan G Or Plan N?

Choosing between Plan G and Plan N ultimately depends on your healthcare needs, budget, and preferences. Here are some factors to consider as well as help you when making your decision.

Medigap Plan G vs. Plan N Calculator:

• Consider using a Medigap Plan G vs. Plan N calculator to help determine which plan may be more cost-effective for you. These tools can help you see how your medical expenses may look with Plan G or Plan N over a year. This can be a valuable resource in making an informed decision, as you see the big picture of your healthcare expenses with each plan.

Consider Plan N if You Have Relatively Few Healthcare Visits:

• Plan N’s lower monthly premiums may be attractive if you’re generally healthy and don’t anticipate many doctor visits or medical procedures. You can save on premiums and be prepared to cover copayments for occasional office or emergency room visits.

Consider Plan G if You Have Frequent Visits or Prefer Predictable Costs:

• On the other hand, if you have chronic health conditions, require frequent medical care, or prefer the peace of mind that comes with predictable costs, Plan G might be the better choice. With Plan G, you won’t have to worry about copayments or Part B Excess Charges, which can add up quickly.

Find The Right Medicare Supplement Insurance Plan

Choosing the right Medigap plan is a significant decision that can impact your healthcare expenses and peace of mind.

To make an informed choice, consider the following steps.

#1- Best Medicare Supplement Insurance Companies

Start by researching the Medicare Supplement insurance companies in your area. Look for providers with a strong reputation for customer service and competitive pricing. Reading customer reviews and seeking recommendations from Medicare agents can also be helpful. Also, remember that all Medigap plan benefits are the same regardless of carrier. We are looking for quality of the carrier.

#2- Compare Medicare Supplement Insurance Plans

Once you’ve identified reputable insurance companies, compare their Medigap plans. Pay close attention to the coverage details and pricing for Plan G and Plan N. This is where a Medigap Calucalor or Agent can assist you in figuring out what plan will work for your budget and health needs.

#3- What Is Medicare, and What Does It Cover?

Before making your final decision, ensure you clearly understand original Medicare and what it covers. Original Medicare consists of two parts: Part A, which covers hospital care, and Part B, which covers medical services. Understanding the gaps of where Medicare requires you to pay for coverage is essential in choosing the right Medigap plan. This will also give you peace of mind, knowing that you can see how Medicare and the plan work hand in hand to provide you with healthcare coverage.

In Conclusion

Medigap Plan G and Plan N offer valuable coverage options to supplement your Medicare benefits. Your key choice lies in Part B, Excess Charges and copayments for office and emergency room visits. If you have relatively few healthcare visits and are comfortable with potential copayments, Plan N’s lower premiums may be suitable for you. However, if you have frequent medical appointments or prefer the predictability of costs, Plan G may provide better financial security.

Ultimately, finding the right Medicare Supplement Insurance plan requires careful research, comparing offers from reputable companies, and evaluating your healthcare requirements. By taking the time to make an informed decision, you can ensure that your Medigap plan aligns with your healthcare needs and financial goals.