Medicare Plan G vs. Plan N: Features, Differences, and Cost Savings

Choosing between Medicare Plan G and Plan N can be a challenging decision, especially with rising healthcare premiums driven by inflation. Both plans offer robust coverage as part of Original Medicare, but understanding their differences is key to finding the right fit for your healthcare needs and budget.

The Impact of Inflation on Healthcare Premiums
Rising healthcare costs have led many Medicare enrollees to reconsider their supplemental plan choices. Plan N, with its lower premiums, is increasingly viewed as a viable alternative to Plan G for individuals looking to save money without compromising essential coverage.

Common Features of Plan G and Plan N
Both Plan G and Plan N share several benefits, making them attractive options for those seeking dependable Medicare supplemental insurance. These include:

• Participation in the Original Medicare system, with broad acceptance by providers nationwide.
• No network restrictions, offering Open Access to any Medicare-accepting provider.
• Freedom to see specialists without referrals.
• No pre-authorizations required for procedures like MRIs, CAT scans, or surgeries.
• Guaranteed renewable policies for life, as long as premiums are paid.
• Nationwide portability across all 50 states.

Key Differences Between Plan G and Plan N
While Plan G is the most comprehensive option available to new Medicare enrollees after January 1, 2020, Plan N offers slightly less coverage but still substantial protection.

• Plan G: Covers all Medicare gaps except the Part B deductible, leaving minimal out-of-pocket expenses.
• Plan N: Covers fewer gaps, requiring co-pays for doctor visits and emergency room visits, along with potential exposure to excess charges.

Understanding Medicare System Gaps
Medicare Parts A and B have notable coverage gaps, including deductibles, co-insurance, and excess charges.

• Plan G: Covers five out of six gaps, leaving only the Part B deductible as an expense.
• Plan N: Covers four out of six gaps, with additional responsibilities for co-pays and potential excess charges.

Excess Charges and Their Frequency
Excess charges occur when non-participating doctors bill up to 15% above Medicare’s approved amount. Fortunately, less than 5% of doctors impose these charges, and certain states, including Connecticut, Minnesota, and Massachusetts, prohibit them entirely.

Why Consider Plan N?
For many, Plan N’s lower premiums make it an appealing choice. Additional benefits include:

• Lower monthly costs compared to Plan G.
• More stable rate increases when entering a new block of business.
• Substantial savings, depending on your state, with potential annual reductions ranging from $300 to $780.

Switching to Plan N
New Medicare enrollees can select Plan N during their initial enrollment period without underwriting. If switching plans later, underwriting may be required, involving health questions and medication checks. If the application is denied, the current policy remains unaffected, offering peace of mind during the process.

Sample Rate Comparisons
Rates for Plan G and Plan N vary significantly by state, with Plan N often offering considerable savings. Reviewing personalized rate comparisons can provide a clearer picture of the financial advantages of switching plans.

Assistance with Medicare Decisions
Navigating the complexities of Medicare can be overwhelming, but you don’t have to do it alone. Personalized assistance is available through trained Medicare guides and online comparison tools. These resources can help you evaluate your options, compare rates, and make an informed decision tailored to your unique healthcare needs and financial goals.

Final Thoughts
Both Plan G and Plan N provide valuable coverage, but the choice ultimately depends on your personal circumstances, budget, and willingness to take on minor additional costs for lower premiums. By understanding the key differences and leveraging available resources, you can confidently choose the plan that best aligns with your healthcare priorities and financial goals