Medicare Supplement Plan G Vs. Plan N: Which Is Better?
With over 15 years of experience assisting individuals in selecting the most suitable Medicare plans, we understand that choosing between Medicare Supplement Plan G and Plan N can be challenging. Both plans offer comprehensive coverage, but they differ in specific benefits and costs. In this article, we will break down the benefits, differences, and costs associated with each plan to help you make an informed decision.
What is Medicare Plan G and How Does It Work?
Medicare Supplement Plan G: The Gold Standard in Coverage
Medicare Supplement Plan G is widely recognized as the top Medigap plan for individuals who want comprehensive, hassle-free healthcare coverage. It is designed to fill in the gaps left by Original Medicare (Parts A & B), ensuring minimal out-of-pocket expenses and complete freedom to choose your doctors and hospitals.
How Plan G Works
Plan G covers almost all Medicare-approved costs, except for the Part B deductible ($257 in 2025). After you meet this deductible, Plan G covers:
- Doctor Visits & Specialist Care – No copays or referrals required
- Hospital Stays – Covers all Medicare Part A coinsurance and deductibles
- Emergency Room Visits – No surprise bills, just peace of mind
- Outpatient Procedures & Diagnostic Testing – Covered in full after the deductible
- Skilled Nursing Facility Care – Covers coinsurance costs for up to 100 days
- Foreign Travel Emergency Coverage – Up to plan limits
The Key Advantages of Plan G
- No Networks, No Restrictions – See any doctor, any hospital, anywhere in the U.S. that accepts Medicare.
- Predictable Healthcare Costs – Aside from your annual Part B deductible, you pay nothing for Medicare-covered services.
- No Referrals or Prior Authorizations – You don’t need permission to see specialists or receive treatments.
- Guaranteed Renewable for Life – Your Plan G can’t be canceled as long as you pay your premiums.
- Lower Lifetime Healthcare Expenses – Many people on Medicare Advantage plans end up paying thousands in copays and maximum out-of-pocket costs – Plan G eliminates that risk.
How Plan G Compares to Medicare Advantage
Medicare Advantage plans often limit you to networks, require referrals, and come with high out-of-pocket costs. While they may have lower monthly premiums, they can become very expensive when you need care.
With Plan G, you get true financial security, better coverage, and total freedom to manage your healthcare your way.
What is Medicare Plan N and How Does It Work?
Medicare Supplement Plan N is an excellent option for those who want strong coverage at a lower monthly premium than Plan G. While it provides comprehensive protection, there are a few small cost-sharing elements that set it apart. For many, Plan N strikes the perfect balance between affordability and coverage.
How Plan N Works
Plan N covers nearly all the gaps in Original Medicare (Parts A & B) but with some cost-sharing for certain services. After you pay the annual Part B deductible ($257 in 2025), Plan N covers:
- Hospital Stays – All Medicare Part A coinsurance and deductibles covered
- Doctor Visits & Outpatient Services – Fully covered after the Part B deductible, except for small copays
- Emergency Room Visits – Small copay of up to $50 per visit (waived if admitted)
- Skilled Nursing Facility Care – Covers coinsurance costs for up to 100 days
- Foreign Travel Emergency Coverage – Up to plan limits
What You Pay with Plan N
- Up to $20 copay for doctor visits
- Up to $50 copay for emergency room visits (waived if admitted)
- Part B deductible must be paid out of pocket
- Excess charges are NOT covered – If a provider doesn’t accept Medicare assignment, they can charge up to 15% more than Medicare’s approved amount.
Plan N vs. Plan G: Key Differences
Both Plan N and Plan G are excellent choices, but there are some key distinctions:
| Feature | Plan G | Plan N |
|---|---|---|
| Part A Hospital Costs | Covered 100% | Covered 100% |
| Part B Deductible | You Pay ($257) | You Pay ($257) |
| Doctor & Specialist Visits | Fully Covered | Up to $20 Copay |
| ER Visits | Fully Covered | Up to $50 Copay |
| Excess Charges | Covered | Not Covered |
| Monthly Premium | Higher | Lower |
Plan G is better for those who want full coverage with no surprises, while Plan N is great for people who don’t mind small copays in exchange for lower premiums.
Plan N vs. Medicare Advantage
Medicare Advantage plans may seem appealing due to their lower premiums, but they often come with network restrictions, higher out-of-pocket costs, and prior authorization requirements.
| Feature | Plan N | Medicare Advantage |
|---|---|---|
| Doctor Choice | Any doctor nationwide that accepts Medicare | Network restrictions (HMO/PPO) |
| Referrals Needed? | No | Often required |
| Hospital Coverage | Fully covered | May have daily copays |
| Out-of-Pocket Costs | Small copays, no MOOP | Up to $8,000+ MOOP |
| Excess Charges | ❌ Not Covered | ❌ Can be denied for out-of-network care |
If you want freedom to choose any doctor, fewer restrictions, and lower overall costs, Plan N is a much better long-term choice than Medicare Advantage.
Who Should Choose Plan N?
- Those who want lower premiums than Plan G but still strong coverage
- People are okay with small copays in exchange for savings
- Those who only visit doctors that accept Medicare assignment (to avoid excess charges)
- Individuals who want nationwide coverage without network restrictions
Final Verdict: Plan N = Affordable & Reliable
Plan N is a budget-friendly alternative to Plan G that still provides exceptional Medicare coverage. If you want to save money while avoiding the risks of Medicare Advantage, Plan N is an excellent choice.
Is Plan G or Plan N More Popular?
Medicare Supplement (Medigap) Plan G and Plan N have become increasingly popular among Medicare beneficiaries in recent years.
Plan G, in particular, has emerged as the most popular choice for new enrollees. In 2023, approximately 53.2% of seniors who purchased Medigap coverage selected Plan G.
Plan N has also seen significant uptake, accounting for about 39.5% of new Medigap enrollments in 2023. This plan is often favored for its balance between comprehensive coverage and lower premiums, appealing to beneficiaries willing to accept modest copayments for doctor and emergency room visits.
The growing popularity of Plan G and Plan N can be attributed to changes in Medigap offerings. Plan F, previously the most comprehensive option, is no longer available to individuals who became eligible for Medicare after January 1, 2020.
This shift has led many new beneficiaries to choose Plan G for its extensive coverage, while those seeking lower premiums with some cost-sharing responsibilities often opt for Plan N.
Overall, Plan G and Plan N have become the leading choices among Medigap plans, reflecting beneficiaries’ preferences for comprehensive coverage and cost-effective options.
What's The Difference In Monthly Premiums?
When comparing Medigap Plan G and Plan N, it’s essential to recognize that while both plans offer similar benefits, the premiums can vary significantly across different insurance companies.
This variation means that one insurer might offer a more affordable Plan G, while another provides a more cost-effective Plan N.
Therefore, it’s crucial to compare premiums from multiple providers, such as Aetna, Cigna, Mutual of Omaha, Allstate, and Aflac, to identify the best option for your needs.
Premium Variations Among Providers
Premiums for Plan G and Plan N can differ based on factors like age, location, gender, and tobacco use. Below is a comparison of sample premiums from various providers:
| Provider | Plan G Premium | Plan N Premium |
|---|---|---|
| Aetna | $1144.28 | $198.54 |
| Cigna | $1144.51 | $1137.00 |
| Mutual of Omaha | $1123.00 | $199.00 |
| Allstate | $1127.00 | $199.00 |
| Aflac | $1131.00 | $190.00 |
Note: These premiums are illustrative and based on a 65-year-old female nonsmoker in specific ZIP codes. Actual premiums may vary depending on individual circumstances and location.
Key Takeaways
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Variability in Premiums: As seen in the table, premiums for the same plan can vary between providers. For instance, Mutual of Omaha offers Plan G at $1123.00, while Cigna’s Plan G is $1144.51.
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Plan Selection: Depending on your healthcare needs and frequency of doctor visits, Plan N might offer savings due to lower premiums, despite the copayments. Conversely, if you prefer minimal out-of-pocket expenses during medical visits, Plan G could be more suitable.
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Comprehensive Comparison: We always recommend obtaining quotes from multiple insurers and consider factors like financial stability, customer service, and additional benefits when choosing a Medigap plan.
By thoroughly comparing offerings from various companies, you can select a Medigap plan that aligns with both your healthcare needs and budget.
Rate Increase History For Plan G and Plan N
When comparing the rate increase histories of Medigap Plan G and Plan N, data indicates that Plan N generally experiences lower premium increases over time compared to Plan G.
This trend is attributed to Plan N’s cost-sharing structure, which includes copayments for certain services, leading to more predictable and lower claims for insurers.
For instance, an analysis by CSG Actuarial reveals that in 2024, Plan G saw an average rate increase of 9.0%, whereas Plan N experienced a lower average increase of 8.2%.
Similarly, insights suggest that Plan N enrollees, often healthier individuals who pass medical underwriting, contribute to more stable and lower premium increases.
Additionally, discussions among beneficiaries highlight that Plan G’s premiums can rise more substantially over time, while Plan N’s increases tend to be more moderate.
In summary, while both plans are subject to annual premium adjustments due to factors like healthcare inflation and claims experience, historical data indicates that Plan N typically experiences lower rate increases over time compared to Plan G.
Which Medicare Plan Is the Best Option?
Choosing the right Medigap plan depends on your specific needs and preferences.
Medicare Plan G offers more predictable out-of-pocket costs for medical expenses, although the monthly premiums are higher.
On the other hand, Medigap Plan N provides a more budget-friendly option with lower premiums, but there may be more out-of-pocket expenses for medical care.
It’s crucial to carefully review the details of each plan, comparing features, copayments, coinsurance, and premiums, about your health requirements. Working with one of our insurance agents can help provide you with valuable guidance to help you make an informed decision.
Bottom Line
Overall, your well-being, particularly in your golden years, is vital. Therefore, selecting the right Medicare plan becomes crucial. Plan G and Plan N are excellent options for seniors, but choosing between the two depends on your personal preferences and Medicare coverage needs.
Before deciding, evaluate both plans and take advice from qualified professionals thoroughly. Choosing the right policy can save you a lot of money and time and, more importantly, help you stay in better health.
Sources: Medicare.gov – eHealth – HelpAdvisor
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