Why This Decision Matters More Than You Think
You’ve done the hard part. You signed up for Medicare. Now someone mentions Medigap, and suddenly there are letters everywhere. Plan A, Plan B, Plan G, Plan N. It feels like alphabet soup, and nobody explains it in plain English.
Here’s the good news. If you’ve narrowed it down to Plan G and Plan N, you’re already ahead of most people. These two are the most popular Medicare Supplement plans for a reason. They cover a lot, they’re widely available, and they work the same way regardless of which insurance company sells them.
The real question is which one makes sense for your situation. And that comes down to a few specific differences that are actually pretty simple once you see them laid out.
What Plan G and Plan N Both Cover
Before getting into the differences, it helps to know what these two plans share. Both Plan G and Plan N cover the big stuff that Original Medicare leaves you paying out of pocket.
- Medicare Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits run out
- Medicare Part B coinsurance or copayment (with one exception for Plan N, which we’ll get to)
- Part A hospice care coinsurance or copayment
- First three pints of blood each year
- Skilled nursing facility care coinsurance
- Part A deductible, which is $1,632 in 2024
- Foreign travel emergency coverage up to plan limits
That’s a solid list. Both plans give you strong protection against unexpected hospital bills and specialist visits. Most people who choose either one are happy with the coverage overall.
So where do they actually differ?
The Real Differences Between Plan G and Plan N
There are three specific areas where Plan G and Plan N part ways. These differences are small on paper but can add up significantly depending on how often you use medical care.
The Part B Deductible
Neither Plan G nor Plan N covers the Medicare Part B deductible. That’s $240 in 2024. You pay that yourself before either plan kicks in for outpatient services. This is worth knowing because some people assume Medigap covers everything from dollar one. It doesn’t, at least not with these two plans.
Copayments with Plan N
This is the biggest practical difference. With Plan G, once you’ve met that Part B deductible, your cost for most doctor visits is zero. Plan N works differently. With Plan N, you pay up to $20 per office visit and up to $50 per emergency room visit (the ER copay is waived if you’re admitted to the hospital).
If you see your doctor four times a year, that’s up to $80 in extra costs. If you see multiple specialists regularly, those $20 copays can stack up fast.
Excess Charges
This one surprises people. Some doctors don’t accept Medicare assignment, which means they’re allowed to charge up to 15% more than what Medicare approves. Plan G covers those excess charges. Plan N does not.
Most doctors do accept Medicare assignment, so this may never affect you. But if you see a specialist who doesn’t, and your Medicare-approved amount for a procedure is $500, you could owe an extra $75 that Plan N won’t help with. In states like New York and Massachusetts, excess charges are banned entirely, so this difference becomes irrelevant if you live there.
Which Plan Actually Saves You More Money?
Here’s where people get stuck. Plan N has a lower monthly premium than Plan G. The difference varies by location and insurance company, but it’s often somewhere between $20 and $50 per month. That’s real money, up to $600 a year.
So the math question is simple: will your copays and any excess charges cost you more than the premium savings?
Let’s look at a quick example. Say Plan G costs you $175 per month and Plan N costs $140 per month. That’s a $35 monthly savings with Plan N, or $420 per year.
Now say you visit your doctor six times a year at $20 per visit. That’s $120 in copays. You’re still ahead with Plan N by $300. But if you’re seeing multiple doctors every month, the copays start eating into those savings quickly.
People who are generally healthy and don’t visit the doctor often tend to do well with Plan N. People who have ongoing conditions and see specialists regularly often find Plan G gives them more predictable costs and less hassle at every appointment.
There’s also a comfort factor. Some people simply don’t want to think about copays or wonder whether their doctor charges excess fees. Plan G gives you that peace of mind. You pay your premium, you meet the Part B deductible once a year, and after that you’re covered.
Frequently Asked Questions
Can I switch from Plan N to Plan G later if I change my mind?
You can try, but it may not be easy. Outside of your initial enrollment period, insurance companies in most states can ask health questions and deny your application based on pre-existing conditions. If your health has changed since you first enrolled, you might not qualify for Plan G at all, or you may face higher premiums. This is why it’s worth thinking carefully about your long-term needs upfront rather than assuming you can always upgrade later.
Are Plan G and Plan N the same regardless of which company I buy from?
Yes. The benefits are standardized by the federal government. A Plan G from Company A covers the exact same things as a Plan G from Company B. The only difference is the monthly premium and the company’s customer service reputation. That’s why it makes sense to shop around and compare premiums once you’ve decided which plan fits your needs.
What happened to Plan F? I keep hearing about it.
Plan F used to be the gold standard because it covered everything including the Part B deductible. But as of January 1, 2020, Plan F is no longer available to people who were newly eligible for Medicare. If you became eligible for Medicare on or after that date, you can’t enroll in Plan F. Plan G is now the most comprehensive option available to new enrollees, which is a big reason why it’s become so popular. If you enrolled before 2020, you may still be able to keep or get Plan F, but it’s worth comparing the premiums since Plan G often comes out cheaper anyway.
The bottom line is this: both Plan G and Plan N are excellent choices that offer far more protection than Original Medicare alone. Plan G gives you simplicity and complete coverage after your deductible. Plan N gives you lower premiums with some out-of-pocket costs at each visit. Know how often you use healthcare, check what doctors in your area charge, and pick the plan that fits your real life, not someone else’s.
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