Medicare Supplement plans, also called Medigap plans, can help pay some of the out-of-pocket costs left behind by Original Medicare. For many people new to Medicare, two of the most commonly considered choices are Plan G and Plan N.
Both plans may offer strong coverage and the freedom to see doctors who accept Medicare anywhere in the United States. But they handle a few costs differently. Understanding those differences can help you choose a plan that fits your budget, health needs, and comfort level.
It is important to know that Medicare Supplement plans work alongside Original Medicare, which includes Part A for hospital care and Part B for medical care. They are different from Medicare Advantage plans, which are another way to receive Medicare coverage through a private insurance company.
What do Medicare Plan G and Plan N have in common?
Plan G and Plan N are standardized Medicare Supplement plans in most states. That means a Plan G from one insurance company generally has the same basic medical benefits as a Plan G from another company. The same is generally true for Plan N.
However, premiums, customer service, rate history, and underwriting rules can vary by carrier and state. Massachusetts, Minnesota, and Wisconsin standardize their Medicare Supplement plans differently, so residents of those states may see different plan names and benefit structures.
In most states, both Plan G and Plan N may help pay for:
- Medicare Part A hospital coinsurance and additional hospital days after Medicare coverage is used
- Part B coinsurance for many covered doctor and outpatient services
- Part A hospice care coinsurance or copayments
- Skilled nursing facility coinsurance
- The Part A hospital deductible
- The first three pints of blood, when needed for a covered service
- Emergency medical care during limited foreign travel, subject to plan limits
With either plan, you generally can use any doctor or hospital nationwide that accepts Medicare. You usually do not need referrals to see specialists. This flexibility can be helpful for people who travel, live in more than one state during the year, or want broad provider access.
What is the main difference between Plan G and Plan N?
The biggest difference is how each plan handles certain Part B costs.
Plan G generally pays all Medicare-approved Part B coinsurance after you meet the annual Part B deductible. In practical terms, once that deductible is met, Plan G may leave you with very few out-of-pocket costs for Medicare-covered services.
Plan N also provides broad coverage, but you may have copayments for some doctor visits and emergency room visits. The emergency room copayment may not apply if you are admitted to the hospital. Plan N also does not cover Part B excess charges.
Neither Plan G nor Plan N covers the Medicare Part B deductible for people who became eligible for Medicare after January 1, 2020. You should plan to pay that deductible yourself each year before your supplement benefits begin paying Part B costs.
What are Medicare Part B excess charges?
An excess charge is an additional amount that some doctors may legally charge above Medicare’s approved amount. This can happen when a provider accepts Medicare but does not accept Medicare assignment, which means they do not agree to accept Medicare’s approved amount as full payment.
Plan G generally covers Part B excess charges. Plan N generally does not. For that reason, some people prefer Plan G if they want more predictable coverage or do not want to think about possible excess charges.
Still, many doctors accept Medicare assignment, and excess charges may be less of a concern in some areas than others. Before choosing Plan N, consider asking your doctors whether they accept Medicare assignment. You can also look for providers through Medicare’s official provider search tools.
Is Plan G better than Plan N?
There is no single best choice for everyone. Plan G may be a good fit if you prefer fewer bills during the year and want coverage for excess charges. It can be especially appealing if you see doctors often, expect regular outpatient care, or simply value more predictable costs.
Plan N may be worth considering if you are comfortable paying modest copayments when you receive certain services and are willing to check whether your providers accept Medicare assignment. Because Plan N asks you to share a little more of the cost when you use care, its premium may sometimes be lower than Plan G. Premiums can vary widely by carrier, location, age, and other rating factors.
A lower premium is not always the only goal. It can help to think about how you prefer to manage health care expenses. Some people would rather pay more each month for fewer surprise bills. Others may prefer a lower monthly premium and do not mind occasional copayments.
How do doctor choice and travel affect the decision?
Both Plan G and Plan N are designed to work with Original Medicare, so they generally offer the same broad access to Medicare-participating providers. This is different from many Medicare Advantage plans, which may use provider networks and plan service areas.
Medicare Advantage can be a good option for people who are comfortable with a plan network and want coverage that may include extra benefits, such as dental, vision, hearing, or fitness programs. Medicare Supplement coverage may be more appealing to people who place a high value on broad doctor choice and predictable help with Original Medicare cost-sharing.
If you spend time in different states, see specialists, or want the ability to visit Medicare-participating providers without network concerns, either Plan G or Plan N may be worth a closer look.
When can you enroll in Plan G or Plan N?
Your best time to buy a Medicare Supplement plan is often your six-month Medigap Open Enrollment Period. This window starts when you are age 65 or older and enrolled in Medicare Part B. During that period, insurance companies generally cannot deny you a Medicare Supplement policy or charge you more because of health conditions.
After that window ends, you may still be able to apply for Plan G or Plan N, but you could be asked health questions in many states. Acceptance is not guaranteed unless you qualify for a guaranteed-issue right. Certain life events, such as losing qualifying coverage, may create special protections.
It can be helpful to compare plans before your Part B effective date so you understand your options and avoid rushed decisions.
How should you choose between Plan G and Plan N?
Start by looking at your doctors, expected medical use, travel habits, and monthly budget. Then compare the premium difference between Plan G and Plan N against the costs you may pay with Plan N, including office visit copayments and possible excess charges.
Also compare insurance companies, not just plan letters. Since standardized benefits are generally the same for the same letter plan, factors such as carrier reputation, household discounts where available, rate history, and how the company prices policies may matter.
Choosing a Medicare Supplement plan does not have to be overwhelming. Eric can help you compare Plan G and Plan N options available in your state, explain the tradeoffs in plain English, and answer your questions with free, no-pressure guidance.