As you approach the age of 65 or if you’re already enrolled in Medicare, understanding your options for supplemental coverage can be overwhelming. Two of the most popular Medicare Supplement plans are Plan G and Plan N. These plans work alongside Original Medicare to help cover out-of-pocket expenses, like copayments, deductibles, and coinsurance. But how do you know which one is the best for you?
In this article, we’ll break down everything you need to know about Plan G and Plan N, compare their features, and help you decide which one might be right for you.
What Are Medicare Supplement Plans?
First, let’s quickly go over what Medicare Supplement plans are. When you turn 65, you have several options for handling your Medicare coverage:
- Original Medicare (Part A & Part B): This is the basic coverage provided by the government. Part A covers inpatient services like hospital stays, while Part B covers outpatient services, like doctor visits. However, Original Medicare doesn’t cover everything, leaving significant gaps in coverage.
- Medicare Advantage Plans (Part C): These are private insurance plans that replace Original Medicare and often include additional benefits like vision, dental, and hearing coverage. However, they can come with restrictions, like provider networks.
- Medicare Supplement Plans (Medigap): These plans are designed to work alongside Original Medicare to fill in the gaps. They cover things like deductibles, copayments, and coinsurance that Original Medicare doesn’t pay for. Plan G and Plan N are two of the most popular Medigap plans.
Why Choose a Medicare Supplement Plan?
Medicare Supplement plans offer several key benefits:
- National Coverage: With a Medigap plan, you have access to nearly any healthcare provider who accepts Medicare, no matter where you live or travel in the U.S.
- No Referrals: If you need to see a specialist, you won’t need a referral from your primary care doctor.
- Lifetime Coverage: Once you’re enrolled in a Medigap plan, you generally don’t have to worry about losing your coverage, as long as you continue paying premiums.
- Consistent Benefits: Unlike Medicare Advantage, which can change every year, Medigap plans offer stable coverage, and your benefits won’t fluctuate.
Gaps in Original Medicare
While Original Medicare (Parts A and B) provides a lot of coverage, it leaves several important gaps:
- Part A Deductible: In 2025, you’ll pay up to $1,676 per benefit period before Medicare starts covering inpatient hospital care.
- Co-Insurance for Hospital Stays: If you’re hospitalized for more than 60 days, you’ll be responsible for daily co-pays ranging from $419 to $838.
- Skilled Nursing Facility Costs: Medicare covers the first 20 days, but after that, you’ll pay $209.50 per day for the next 80 days.
- Part B Deductible: You’ll pay $257 out-of-pocket for outpatient services before Medicare starts covering 80% of your costs.
- Excess Charges: Some doctors who don’t accept Medicare’s full payment can charge up to 15% more than what Medicare pays.
These gaps can lead to significant out-of-pocket costs, which is where Medicare Supplement plans like Plan G and Plan N come in.
Plan G: Comprehensive Coverage
Plan G is one of the most popular Medicare Supplement plans because it offers comprehensive coverage for most of the gaps left by Original Medicare:
- Part A Deductible: Plan G covers the $1,676 Part A deductible.
- Extended Hospital Stay Co-pays: It covers co-pays for extended hospital stays (after 60 days).
- Skilled Nursing Facility Co-pays: It covers the co-pays for skilled nursing facility care.
- Excess Charges: Plan G covers excess charges, so you won’t have to pay extra if a doctor doesn’t accept Medicare’s full payment.
The only out-of-pocket cost with Plan G is the Part B deductible, which is a one-time payment of $257 per year. Once that’s paid, your costs are minimal for the rest of the year.
Plan N: Lower Premiums, More Out-of-Pocket Costs
Plan N is a more budget-friendly option compared to Plan G, but it does come with a few trade-offs:
- Part A Deductible: Like Plan G, Plan N covers the Part A deductible.
- Extended Hospital Stay Co-pays: Plan N also covers co-pays for extended hospital stays.
- Skilled Nursing Facility Co-pays: Just like Plan G, Plan N covers the costs for skilled nursing facility care.
- Excess Charges: Unlike Plan G, Plan N doesn’t cover excess charges, so if you see a doctor who doesn’t accept Medicare’s full payment, you could be responsible for up to 15% more.
- Co-pays: Plan N has co-pays for doctor visits ($20) and emergency room visits ($50). These co-pays add up, but they help keep the premium lower.
While Plan N offers lower premiums compared to Plan G, you’ll need to be prepared for these co-pays and the possibility of excess charges if you see a non-participating doctor.
Premiums: How Much Do Plan G and Plan N Cost?
The monthly premium for both Plan G and Plan N can vary based on factors like your age, gender, and location. Here’s a general idea of what you might expect to pay for each plan:
- Plan G: Premiums typically range from $115 to $140 per month for a woman turning 65 and $125 to $155 for a man.
- Plan N: Premiums are usually lower, ranging from $80 to $120 per month for a woman and $90 to $125 for a man.
Plan N offers lower monthly premiums, but the trade-off is higher out-of-pocket costs like co-pays and the potential for excess charges.
Which Plan Should You Choose?
So, how do you decide between Plan G and Plan N? Here are a few considerations to help guide your decision:
- Plan G: Choose Plan G if you want the most comprehensive coverage and don’t mind paying a slightly higher premium. It offers extensive coverage, with minimal out-of-pocket costs, making it a good choice if you prefer peace of mind and want to avoid surprise medical bills.
- Plan N: Opt for Plan N if you’re comfortable with a lower premium and don’t mind paying some out-of-pocket costs. Plan N is a good option for people who want to save on premiums and are okay with paying co-pays for doctor visits and emergency room visits. Just keep in mind the risk of excess charges in rare cases.
Ultimately, the right plan for you depends on your health needs, your budget, and your tolerance for out-of-pocket expenses.
Final Thoughts
Choosing the right Medicare Supplement plan is an important decision, and it’s worth taking the time to compare your options. Whether you go with Plan G or Plan N, both plans offer solid coverage that can help protect you from high out-of-pocket medical costs. Be sure to evaluate your health needs, financial situation, and preferences to make the best choice for you.
If you’re still unsure which plan is best, don’t hesitate to reach out to a licensed insurance agent or use online tools to compare premiums and benefits in your area.
