If you have decided on Original Medicare with a Medicare Supplement (Medigap) plan, the next question is often which letter to choose. For new enrollees, Plan G and Plan N are the two most commonly compared. Both are strong plans. The real question is how much risk you are comfortable with in exchange for a lower monthly premium. This guide explains the differences without quoting prices, because prices change by carrier, age, and ZIP code.
What Medigap plans are standardized
Medigap plans are standardized by letter, so a Plan G sold by one company covers the same benefits as a Plan G sold by another, in most states. The difference is the premium, the carrier's service, and how the company raises rates over time. That is why comparing carriers within a plan letter matters just as much as comparing letters.
What Plan G covers
Plan G pays for most of the costs Original Medicare leaves to you, including:
- Part A coinsurance and hospital costs.
- Part A deductible.
- Part B coinsurance or copayment.
- Part B excess charges (when a doctor charges above the Medicare-approved amount, where allowed).
- Skilled nursing facility coinsurance.
- Foreign travel emergency care, subject to limits.
You pay the Part B deductible once per year. After that, Plan G generally leaves you with few out-of-pocket costs for Medicare-covered care.
What Plan N covers
Plan N covers much the same list but with a few differences:
- Office visit copay. You may pay up to a set copay for some doctor visits.
- Emergency room copay. A copay may apply if you are not admitted.
- No Part B excess charge coverage. If a provider charges more than the Medicare-approved amount, you may owe the difference.
- You also pay the Part B deductible.
Plan N premiums are generally lower, which is its appeal.
A framework for deciding
Think about three things:
- How often do you use care? If you visit doctors frequently, copays on Plan N add up. If you visit rarely, the lower premium may win.
- How much surprise can you absorb? Plan G is predictable. With Plan N, a bad year can cost more than expected.
- Which doctors do you see? If your providers accept assignment, the excess-charge risk drops.
A simple comparison is to take the premium difference between G and N, multiply by twelve, then compare it to the copays you would pay in a typical year and in a heavy-use year. If the annual premium savings is larger than your expected copays, Plan N may save you money. If you expect many visits, Plan G may break even or win.
See real Plan G and Plan N quotes side by side
We'll compare carriers at your ZIP code and show the true annual cost for each plan.
Get my free Medigap comparisonWhy the cheapest premium can be misleading
Medigap premiums are not just about the starting price. Carriers use different rating methods:
- Attained-age: the premium rises as you get older.
- Issue-age: the premium is based on the age you were when you bought the plan, and does not rise because of age (it can still rise with inflation).
- Community-rated: the same premium for everyone regardless of age.
A plan that looks cheapest at 65 may become expensive later. Ask how a carrier has handled rate increases historically, and compare more than one.
Other points to consider
- High-deductible Plan G. Some carriers offer a high-deductible version of Plan G with a much lower premium and a larger annual deductible. It can make sense for healthy people who want catastrophic protection.
- Household discounts. Some carriers discount for spouses at the same address.
- Timing. Your best chance for guaranteed acceptance is during your six-month Medigap Open Enrollment Period. Outside it, health questions may apply.
- Drug coverage. Medigap does not include drug coverage, so you need a separate Part D plan.
Bottom line
Choose Plan G if you want the most predictable costs and are willing to pay a bit more each month. Choose Plan N if you use care moderately, your doctors accept assignment, and you want a lower premium. If you want to see how the two compare to an Advantage plan, read Advantage vs. Medigap. For a shorter breakdown, see our earlier Plan G vs. Plan N guide.
A quick worked approach
Ask for the monthly premium for both plans from the same carrier at your ZIP code and age. Subtract the Plan N premium from the Plan G premium and multiply by twelve to get the yearly savings. Then estimate your copays: how many office visits and urgent visits you expect, multiplied by the Plan N copay amount. If the yearly savings is larger than your expected copays, Plan N is ahead in a normal year. Then ask yourself whether you are comfortable if a harder year happens.
How we help
We are an independent agency, so we compare Plan G and Plan N across many carriers and show the actual price at your ZIP code and age. Our help costs you nothing because carriers pay us and your premium is the same either way.
Medicare help in your state
Honorbrook is licensed in the 11 states below. Plan availability, costs and some rules vary by state and county, so call us at (571) 354-0146 for what applies where you live.