Plan G and Plan N are the two Medicare Supplement plans most people end up choosing between. They cover almost the same things. The difference comes down to a few small bills that Plan N leaves with you, in exchange for a lower monthly premium.
Here is exactly where they differ, how to run the math for your own situation, and who each plan fits.
What Plan G and Plan N both cover
Both plans pay your share of most Medicare-approved costs after Original Medicare pays its part:
- The Part A hospital deductible of $1,736 per benefit period
- Hospital coinsurance and an extra 365 days of hospital care
- Skilled nursing facility coinsurance
- The 20% Part B coinsurance on doctor visits, outpatient care, and tests
- Hospice coinsurance and the first 3 pints of blood
- Emergency care when you travel outside the U.S., up to the plan limits
Neither plan has a network. You can see any doctor in the country who accepts Medicare, and you do not need referrals.
Where they differ
- Part B deductible: Neither plan pays it. You pay the first $283 of Part B costs each year with either one.
- Office visit copays: Plan G has none. Plan N has a copay of up to $20 for some doctor visits.
- Emergency room copays: Plan G has none. Plan N has a copay of up to $50 for an ER visit, waived if you are admitted to the hospital.
- Part B excess charges: Plan G pays them. Plan N does not.
- Premium: Plan N almost always costs less each month.
Everything else is the same.
Part B excess charges, explained
Doctors who accept Medicare assignment take Medicare’s approved amount as full payment. Doctors who do not accept assignment can charge up to 15% more. That extra amount is called an excess charge.
With Plan G, the plan pays it. With Plan N, you do. In practice, most doctors accept assignment, so excess charges are uncommon. You can avoid them by asking, “Do you accept Medicare assignment?” before an appointment.
A few states do not allow excess charges at all. Ohio is one of them, so Plan N’s biggest gap mostly disappears there.
How to run the math
The question is simple: does the money you save on Plan N’s premium cover the copays you would pay?
- Get both premiums for your age and ZIP code. Prices vary a lot by company and by state.
- Multiply the monthly difference by 12. That is your yearly savings with Plan N.
- Estimate your copays. Count your typical doctor and specialist visits and multiply by up to $20. Add $50 for each ER visit that does not lead to a hospital stay.
- Compare the two numbers.
Here is an example. Say Plan N is $35 a month cheaper. That is $420 a year in savings. If you see doctors 8 times a year and pay a $20 copay each time, that is $160. You still come out about $260 ahead with Plan N. If you see specialists every month, the savings shrink fast.
Use your own numbers. The $35 is only an example, and premiums in your area may be wider or narrower apart.
Who Plan G fits
- You want no surprises. After the Part B deductible, your Medicare-approved costs are covered.
- You see doctors or specialists often.
- You use doctors who do not accept Medicare assignment.
- You would rather pay a higher, predictable premium than a lower premium plus copays.
Who Plan N fits
- You are fairly healthy and see the doctor a few times a year.
- You are comfortable with small copays in exchange for a lower premium.
- Your doctors accept Medicare assignment, or you live in a state that does not allow excess charges.
What about Plan G’s high-deductible version?
Some companies also offer a high-deductible Plan G. It covers the same things as Plan G, but only after you pay a yearly deductible set by Medicare. The premium is much lower. It can work for healthy people who could cover the deductible in a bad year, but it is a bigger gamble than Plan N.
Choose carefully the first time
When you first get Part B, you have a 6-month Medigap Open Enrollment Period. During those 6 months, a company cannot turn you down or charge you more because of your health. After that, in most states, switching plans means answering health questions, and you can be declined.
That makes your first choice matter. Moving from Plan N to Plan G later is not guaranteed. Our guide on how and when to switch Medigap plans explains when you can switch without health questions.
Common questions
Is Plan F better than Plan G?
Plan F also pays the Part B deductible, but it is only available to people who were eligible for Medicare before January 1, 2020. For everyone else, Plan G is the most complete option.
Do Plan G and Plan N cover prescription drugs?
No. Medicare Supplement plans do not cover outpatient prescriptions. You need a separate Part D drug plan. See our Medicare drug plan help page.
Are Plan G and Plan N the same from every company?
Yes. The benefits are standardized by law, so Plan G from one company covers the same things as Plan G from another. What differs is the price and how the company raises rates over time.
Get the real numbers for your ZIP code
The only way to know which plan saves you money is to compare actual premiums where you live. We do that at no cost. Start with the Medicare Clarity Score, or call Scott at 512-844-3983 and we will run Plan G and Plan N side by side for you.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. Not affiliated with or endorsed by the federal government or the federal Medicare program.