Shopping for the right Medicare plan is difficult.
Not only are there so many options, but on paper, they might all seem the same.
You only really realize the difference between plans when it comes time to pay for and/or use your plan or your services (and by this time it might be too late to switch!).
But don’t worry—this article should help you understand a few of your Medicare plan options and what you might want to consider before enrolling in a plan.
In this article, you’ll get a close comparison of two of the most popular Medicare Supplement (Medigap) plans: Plan G vs Plan N.
Many people are enrolled in both types of plans. But we’re going to dig deeper to find which one might be a fit for you.
We’ve been helping people understand the nuances of Medicare for more than a decade, and helped thousands choose the right Medicare plan fit for themselves.
So let’s get right into it!
Quick Answer: Medigap Plans G and N Are Often Preferred By…
We’ve found that Medicare Supplement (Medigap) Plan G is usually preferred by people who have constant hospital and clinic visits and are okay with higher monthly premiums and costs as long as they’re predictable.
Medigap Plan G typically has higher monthly payments than other Medicare Supplement Plans, but it provides more coverage than the other Medicare Supplement plans available today (except when compared to Medigap Plan F, but Plan F is no longer available for people who turned 65 after January 1, 2020).
Meanwhile, we’ve found that Medicare Supplement (Medigap) Plan N is usually preferred by people who don’t have a lot of emergency room visits a year and want to save money on monthly premiums and out of pocket costs.
Medigap Plan N usually has lower monthly premiums than Medigap Plan G, but Medigap Plan N has some copays for doctor and ER visits, and also doesn’t cover Medicare Part B excess charges (more on this below).
What is Medigap?
Before we can discuss the details of Medigap Plans G and N, it’s important to understand what Medigap is.
Medigap is another name for Medicare Supplement Plans. These plans are provided by private health insurance companies to help pay for out-of-pocket costs not covered by Original Medicare (which is Medicare Parts A and B). There is a “gap” in coverage in Original Medicare—hence the name “Medigap”.
The Medicare Supplement (Medigap) plans you can choose from include Medigap Plan A, B, C, D, F, G, K, L, M, and N. Even though these plans are provided by private insurance companies,Medigap plans are standardized.
This means that no matter which insurance company you get your Medigap plan from, their plans will have the same level of coverage.
Two of the most popular Medicare Supplement (Medigap) plans today are Plans G and N (besides Plan F, which is no longer available to people aging into Medicare).
That’s why knowing the difference between these two Medigap plans may help you make a more informed decision regarding your Medicare coverage.
Quick note! “Medicare Supplement” Plan G and “Medigap” Plan G are the same thing. Some people also sometimes call it “Medicare” Plan G or just Plan G. The same goes for Medicare Supplement Plan N.
Medigap Plan G vs Medigap Plan N – The Full Comparison
Now that you know what exactly a Medigap plan is, let’s get to the details. Here are the differences between Medigap Plan G and N:
Medigap Plan G and N Comparison Chart
| Medigap Plan G | Medigap Plan N | |
| Average cost (estimate) | $100 – $300/month | $80 – $250/month |
| Medicare Part A coinsurance and hospital costs (up to 365 days after Medicare perks are used up) | ✅ | ✅ |
| Medicare Part B coinsurance and copayments | ✅ | ✅❌(Partially—copays for office and ER visits) |
| Blood transfusion (first three pints) | ✅ | ✅ |
| Medicare Part A hospice care coinsurance and copayments | ✅ | ✅ |
| Skilled nursing facility care coinsurance | ✅ | ✅ |
| Medicare Part A deductible | ✅ | ✅ |
| Medicare Part B deductible | ❌ | ❌ |
| Medicare Part B excess charge | ✅ | ❌ |
| Foreign travel emergencies | 80% | 80% |
| Out-of-pocket limit | ❌ | ❌ |
Medicare Supplement (Medigap) Plan G
Some people today prefer Medicare Supplement (Medigap) Plan G because it covers many of the gaps in Original Medicare, giving them low out-of-pocket expenses and predictable costs.
The Medicare Supplement plan that covers more gaps in Original Medicare than Medigap Plan G is Medigap Plan F. However, people who turn 65 after January 1, 2020, are no longer eligible for Medigap Plan F.
That’s why, despite having a higher monthly cost than most other Medicare Supplement plans, Medigap Plan G is one of the more popular plans we see people enrolling in.
What Medigap Plan G Covers
- Medicare Part A and B Coinsurance and Copayments – This includes your out-of-pocket expenses for Medicare Part A (hospital insurance) and Medicare Part B (medical insurance).
- Blood Transfusion – If you have to buy blood, Original Medicare doesn’t cover the first three pints. But if you’re enrolled in a Medigap Plan G, your insurance company will likely pay this for you.
- Hospice Care and Skilled Nursing Facility Coinsurance and Copayments – Medicare Part A covers hospice care and stays at a skilled nursing facility. However, there are several copays and coinsurance payments that you’re responsible for. Medigap Plan G will likely cover these out-of-pocket expenses for you.
- Medicare Part A Deductible – You’ll have to spend a certain amount each year on inpatient hospital care before Original Medicare begins to cover your costs. But if you have Medigap Plan G, your insurance company will likely pay this deductible for you.
- Medicare Part B Excess Charge – Some healthcare providers can charge up to 15% more than the Medicare-approved amount for covered items and services. This isn’t common, but you’re most likely responsible for paying these excess charges out-of-pocket. However, if you’re enrolled in Medigap Plan G, your insurance company probably will pay these excess charges for you.
- Foreign travel emergencies – Original Medicare doesn’t cover most healthcare expenses outside the country. However, some Medigap plans like Medigap Plan G cover up to 80% of your emergency costs abroad. Medigap Plan G has a $50,000 lifetime limit for foreign costs.
What Medigap Plan G Doesn’t Cover
- Medicare Part B Deductible – You’ll have to hit your deductible for outpatient medical care before Medicare Part B covers your costs. This deductible is something that Medigap Plan G doesn’t cover. A lot of people compare Medigap Plan G to Medigap Plan F, and the only difference between these two is the exclusion of the Medicare Part B deductible in Medigap Plan G.
- Out-of-Pocket Limit – Some Medigap plans have out-of-pocket limits. However, this is unnecessary for Medigap Plan G since your only out-of-pocket spending should be for the Medicare Part B deductible.
Who is Medigap Plan G Usually Preferred By?
Medigap Plan G is usually preferred by people who want a Medicare Supplement plan that provides plenty of coverage, even if it means spending more per month. Medigap Plan G typically covers all the coinsurance and copayments in Original Medicare. The Medicare Part B deductible is the only “gap” of Original Medicare that Medigap Plan G typically doesn’t cover.
The monthly fees for Medigap Plan G are normally higher than that of other Medicare Supplement Plans. However, if you are expecting frequent hospital and doctor visits, the low out-of-pocket expenses of Medigap Plan G can potentially offset the monthly costs of keeping the plan.
Even if you aren’t anticipating many hospital visits, some people still choose Medigap Plan G for its predictable costs. Mapping out your expenses for the year should be relatively easy with a Medigap Plan G since you won’t have to calculate potential copayments (just the Medicare Part B deductible).
Other plans (like Medigap Plan N) might offer lower monthly fees. However, if you often visit the ER or clinics, the copayments you have to make can offset your savings on the plan’s monthly payments.
These are some of the reasons why Medigap Plan G is one of the most popular Medicare Supplement (Medigap) plans today.
Medigap Plan N
Medigap Plan N is another one of the popular Medicare Supplement Plans today.
Many people prefer this plan because, to them, it offers a healthy balance between coverage and cost savings.
However, it’s important to do some calculations before enrolling in Medigap Plan N to see if its lower monthly fees are worth the out-of-pocket expenses you’ll have with this plan. We’ll talk more about this in a bit, but first, let’s take a closer look at Medigap Plan N.
What Medigap Plan N Covers
- Medicare Part A Copays and Hospital Costs – When you enroll in Medigap Plan N, you shouldn’t have to worry about the Medicare Part A copays, since your insurance company will typically pay these for you.
- Medicare Part B Coinsurance (except office and ER visits) – Medigap Plan N covers most of the Medicare Part B 20% coinsurance. However, you’ll normally have to pay copays for doctor’s office visits (up to $20) and ER visits (up to $50).
- Blood Transfusion – If you need blood, Medigap Plan N typically will cover the first three pints.
- Hospice Care and Skilled Nursing Facility Coinsurance and Copayments – Like Medigap Plan G, Medigap Plan N also generally covers the coinsurance or copayments you need to pay for hospice care and skilled nursing facility stays.
- Medicare Part A Deductible – Medicare Part A has a deductible you need to spend out-of-pocket before Medicare starts covering your hospital costs. If you’re enrolled in Medigap Plan N, your insurance company should pay this deductible for you.
- Foreign Travel Emergencies – Like Medigap Plan G, Medigap Plan N also normally covers 80% of any medical emergencies that happen abroad—and it has a $50,000 lifetime limit.
What Medigap Plan N Doesn’t Cover
- Medicare Part B Office and ER Visit Copayments – Medigap Plan N has a copayment for doctor’s office visits (including specialists, up to $20), and a copayment for ER visits (up to $50 and unless you’re admitted to any hospital and the ER fee falls under Medicare Part A). This is one of the main factors you need to calculate when deciding if you should enroll in Medigap Plan N.
- Medicare Part B Deductible – Medigap Plan N doesn’t cover the Medicare Part B deductible. This means you’ll have to spend this amount out-of-pocket on medical services and items before Medicare starts covering you.
- Medicare Part B Excess Charge – Excess charges are rare and avoidable, but they can be very costly. Some healthcare providers can charge up to 15% more than the Medicare-approved amount, and you’re responsible for paying this 100% out-of-pocket. Medigap Plan N doesn’t generally cover excess charges. If you’re not careful, you could be subject to high out-of-pocket costs (ex: a surgery that costs $100,000 might cost you up to $15,000 out-of-pocket if there are excess charges).
- Out-of-Pocket Limit – Like Medigap Plan G, Medigap Plan N also doesn’t have a set maximum out-of-pocket limit.
Who is Medigap Plan N Usually Preferred By?
Medigap Plan N is usually preferred by budget-minded people who are anticipating several office and ER visits every year.
The amount you save in monthly fees by choosing Medigap Plan N over Medigap Plan G can quickly be spent in copays if you visit your doctor or the ER many times in a year.
For example, let’s say you’re quoted $100/month for Medigap Plan G, and $80/month for Medigap Plan N. (Note: the exact prices for Medigap plans vary from state to state. To do your own calculation, replace the numbers in this example with actual quotes from your area).
In this scenario, you’d save $240 a year on monthly fees by choosing Medigap Plan N (Plan G cost – Plan N cost = monthly cost difference, monthly cost difference x 12 = annual cost difference) ($100 – $80 = $20, $20 x 12 = $240).
With Medigap Plan N, you’d have copays for office visits (up to $20), and ER visits (up to $50).
This means that for this scenario, you’d need to have fewer than 12 office visits ($240) or 5 ER visits ($250) in the year for your costs to be lower with Medigap Plan N compared to Medigap Plan G (if the copays are $20 for office visits and $50 for ER visits—they may be less).
There are several other factors you should consider. This example doesn’t include Medicare Part B excess charges, which are avoidable, but you may be responsible for paying these under Medigap Plan N. But this simple example should give you a general idea of how to calculate the potential cost difference between Medigap Plan N and Medigap Plan G in your area.
You can see from this example how choosing Medigap Plan N over Medigap Plan G can potentially save you money. However, some people would prefer not to have the risk of spending more on copays, and opt for Medigap Plan G instead.
The Key Differences Between Medigap Plan G and Medigap Plan N
| Medigap Plan G | Medigap Plan N | |
| Monthly Cost | Medigap Plan G typically has the highest monthly cost range | Medigap Plan N typically has a lower monthly cost range |
| Coverage | Medigap Plan G covers most copays and coinsurance payments in Original Medicare. It doesn’t cover the Medicare Part B deductible. | Medigap Plan N covers most copays and coinsurance payments in Original Medicare. However, it notably has copays for office (up to $20) and ER visits (up to $50) Plan N also doesn’t cover the Medicare Part B deductible and Medicare Part B excess charges |
| Availability (AHIP, 2022) | 75% of Medigap insurance companies offer Plan G | 68% of Medigap insurance companies offer Plan N |
| Popularity (AHIP, 2022) | 4,856,256 people are enrolled in Medigap Plan G | 1,377,952 people are enrolled in Medigap Plan N |
| Plan Popularity Rank (AHIP, 2022) | #2. Medigap Plan G is the second most popular plan, just behind Plan F (which is unavailable for people aging into Medicare) | #3. Medigap Plan N is the third most popular Medigap plan |
| Often Preferred By | People who want fewer out-of-pocket expenses / People who want predictable costs | Budget-conscious people who are anticipating few office and ER visits |
Frequently Asked Questions About Medigap Plan G vs Medigap Plan N
Can I Switch From Medigap Plan N to Medigap Plan G? (And Vice Versa)
Yes, you can switch from Medigap Plan N to Medigap Plan G and vice versa. However, if you do this outside the Medigap Open Enrollment Period, insurance companies can decline your application because you will have to go through medical underwriting, and you may have to pay higher monthly payments.
Once your Medicare Part B coverage begins, you have a six-month window during which you can enroll in any Medigap plan. This is known as the Medigap Open Enrollment Period.
During the Medigap Open Enrollment Period, insurance companies selling Medigap plans are not allowed to have an underwriting process. They cannot decline your application due to pre-existing health conditions, and they can’t charge you more than the preferred rate.
However, once the Medigap Open Enrollment Period ends, most insurance companies will require you to answer several health-related questions. There is an underwriting process and insurance companies can decline your application for any reason.
If you answer “Yes” to any of the health-related questions, it’s likely the insurance company will decline your application. Even if they accept your application, you’ll usually have a higher monthly cost if you already have a pre-existing condition.
That’s why if you sign up for Medigap Plan N, but find it’s not for you, you can switch to another plan as long as you’re still within the Medigap Open Enrollment Period. If you switch outside the Medigap Open Enrollment Period, you may have to go through medical underwriting.
This is one of the reasons why many people try to compare their Medigap plan options before their Medicare Part B coverage begins. That way, they can enroll in a plan they’re happy with and avoid any complications with switching.
Important: If you buy a Medigap policy during your six-month Medigap Open Enrollment Period and decide you don’t like the policy during this period, you can switch to a different Medigap policy. When you get your new Medigap policy, you have 30 days to decide if you want to keep it (called a 30-day free look period). You may decide to avoid canceling your first Medigap policy until you’ve decided you’re happy with your second Medigap policy. If you do this, you’ll need to pay both premiums for the month that you have both.
When Can I Switch From Medigap Plan N to Medigap Plan G?
You can apply to switch your Medigap Plan N to Medigap Plan G (and vice versa) any time of the year. You don’t have to wait for the Annual Election Period or any special enrollment period.
The Annual Election Period (Oct 15 – Dec 7) is when you can switch Medicare Advantage Plans (Part C) and Medicare Drug Plans (Part D). It does not apply to Medigap plans.
Again, you can apply to switch Medigap Plans at any time. Applying during the Annual Election Period will not remove the medical questionnaire and underwriting process.
What’s an Alternative to Medigap Plan G?
One of the most similar Medigap plans to Medigap Plan G is Medigap Plan D. Medigap Plan D may typically have slightly lower monthly fees, and it covers everything that Medigap Plan G covers except for the Medicare Part B excess charge.
The average monthly cost for Medigap Plan D is roughly $120 – $240/month. In most states, you’ll find that it’s a few dollars cheaper per month than Medigap Plan G.
However, according to AHIP, only 46% of Medigap insurance companies offer Medigap Plan D, so there’s a possibility Medigap Plan D won’t be available in your area.
What’s an Alternative to Medigap Plan N?
Another Medigap plan with low average monthly costs is Medigap Plan K. Medigap Plan K typically has the lowest average monthly costs of all the Medigap plans. However, it also has limited coverage.
Most people can get Medigap Plan K for only $60 – $100/month.
However, instead of covering your:
- Medicare Part B coinsurance and copayments,
- first three pints of blood,
- Medicare Part A hospice care coinsurance and copayments,
- skilled nursing facility copays, and
- Medicare Part A deductible.
Medigap Plan K will typically only cover 50% of the costs.
Medigap Plan K also doesn’t normally cover the Medicare Part B deductible and excess charge and has no international coverage.
Medigap Plan K has an out-of-pocket limit.
Need Help Deciding Between Medigap Plan G and Plan N?
There are a lot of factors to consider when choosing between Medigap Plan G and Plan N.
Since changing plans may be difficult once you’re in, it’s critical to be informed before you enroll in a Medigap plan.
There are also many Medigap insurance companies in most areas, and there are nuances between each that you should be aware of.
That’s why if you want to find the right Medigap plan fit for your specific situation, don’t hesitate to call or text us! Our team of licensed insurance agents would be glad to assist you in finding the right plan for you.