Plan G vs. Plan N

In the recent past, the biggest debate when choosing between two Medicare supplements was whether to enroll in Plan F or Plan G. Plan F offered slightly more coverage, but Plan G had lower monthly premiums. Today, the debate contenders have changed. We are seeing a rise in the popularity of Plan N, which is slowly replacing Plan F in popularity.

Why the change? Let’s talk about that and also fill you in on what both Plan G and Plan N cover so that you can make an informed decision when it comes to choosing a Medicare supplement.

Why Is Plan F Becoming Less Popular?

Some changes occurred in 2020. (That may be the understatement of the year!) MACRA, the Medicare Access, and CHIP Reauthorization Act passed a law prohibiting Medicare supplements from paying the Medicare Part B deductible for newly eligible beneficiaries.

Since Part F does include payment for the Part B deductible, it is one of the plans that new Medicare beneficiaries cannot enroll in. If you turn (or turned) 65 on or after January 1, 2020, you cannot get Medigap Plan F.

Those who were already enrolled in Part F or who turned 65 prior to January 1, 2020, may continue to keep their Plan F coverage. However, since the pool of beneficiaries enrolled in this plan will continue to decrease, premiums for Plan F are expected to jump drastically in the next few years.

The New Debate

Since Plan F is no longer an option for newly eligible Medicare beneficiaries, Plan G is their most comprehensive coverage option. The only thing Plan G does not cover that Plan F did is the Part B deductible. Otherwise, the plans are exactly the same.

Of course, more comprehensive coverage comes with a higher price tag. Plan G does have one of the higher monthly premiums. For this reason, some beneficiaries are looking at Plan N, which offers nearly the same benefits at a lower monthly cost.

Let’s take a look at what each plan covers and how they differ.

Plan G Coverage Details

• Part A coinsurance and hospital costs
  • It also offers an additional 365 days after Medicare benefits are exhausted
• Part B coinsurance or copayment
• Blood (first 3 pints)
• Hospice care coinsurance or copayment
• Part A deductible
• Part B excess charges
• Emergency services during foreign travel

Plan N Coverage Details

• Part A coinsurance and hospital costs
  • It also offers an additional 365 days after Medicare benefits are exhausted
• Part B coinsurance or copayment
• Blood (first 3 pints)
• Hospice care coinsurance or copayment
• Part A deductible
• Emergency services during foreign travel

Where They Differ

We already know that neither of these plans pay for the Part B deductible, which is $226 in 2023.

The major difference between these two plans is the copays that come with Plan N. You’ll have a $20 copay for office visits and a $50 copay for emergency room visits. Plan G does not require copays. (The Plan N copay for emergency room visits is waived if you get admitted as an inpatient.)

The other difference is that Plan N does not pay for Part B excess charges. Excess charges are amounts above the Medicare-approved amount for services. If your provider does not accept Medicare assignment, they are allowed to charge up to an additional 15% for services. If you have Plan N, you’ll be responsible for paying this extra 15%.

If you live in a MOM state, Part B excess charges are prohibited, so this feature of Plans N and G does not matter in that case. MOM stands for Medicare Overage Measure. Currently, there are eight MOM states: Vermont, Rhode Island, Pennsylvania, Ohio, New York, Minnesota, Massachusetts, and Connecticut. 

Who Wins?

You get to decide! Like everything else in Medicare, the best plan on the market is the one that fits all of your needs.

With Plan F no longer available, Plan G is considered the most comprehensive coverage. However, Plan N offers nearly the same benefits and generally has lower premiums. It’s a great value for the price.

You may also want to consider rate increases. Since Plan G is the guaranteed issue plan for newly eligible Medicare enrollees, its premiums may be subject to higher rate increases over time.

Ultimately, you’ll need to choose between coverage and cost. Both of these plans are going to provide you with excellent coverage for your healthcare needs and significantly reduce your medical expenses.