Last Updated on March 26, 2019
Do you know that Medicare only covers about 80% of your healthcare expenses?
Yes?
That’s great!
That’s why you are probably looking for an option to cover the lacking of your Original Medicare. If you are thinking of a Medicare Supplement plan (Medigap),then you are heading to the right start. Looking for the right Medicare supplement insurance plan takes careful consideration of all plan option.
In this article, we are going to look at and compare the Medicare Plan N vs. Plan G options. As we lean towards understanding the benefits of the two said plans, it is important to take note of the out-of-pocket responsibilities that each plan has.
Let’s get started with Medicare supplement plan N.
What is Medicare Plan N?
Medicare supplement plan N is one of the ten standardized plans of Medigap. It is also one of the plans that are rapidly gaining popularity alongside Plan G. Despite having lesser benefits than what Plan G has, Plan N has much lesser premium cost.
Medigap Plan N is valuable because it offers good balance between coverage, out-of-pocket expenses, and affordable premium cost.
What it covers?
Medicare Plan N provide most of the benefits that Medigap offers. Plan N’s benefit includes foreign travel emergency coverage which is valuable if you often travel outside the US.
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
- Medicare Part B coinsurance and copayment (except $20 for some office visits and $50 for emergency room visits)
- Blood (first 3 pints)
- Part A hospice care coinsurance or copayment
- Skilled nursing facility coinsurance
- Medicare Part A deductible
- Foreign travel emergency (up to plan limits)
What it doesn’t cover?
Medigap Plan N doesn’t cover the following benefits:
- Medicare Part B deductible
- Part B excess charge
What can you expect if you have Plan N?
If you are taking Medigap Plan N in consideration, it is important to take a closer look at the amount of out-of-pocket expenses that you’ll have to shoulder.
Medicare Part B deductible in 2019 is $185 (may change every year).
You’ll be responsible for paying all the Part B excess charges, and have to pay for it out of pocket. It means that if you consult a doctor that doesn’t accept Medicare assignment, that physician may charge you up to 15% more than the normal Medicare rate, and you’ll have to pay for it by yourself.
Also, don’t forget about the Medigap Plan N copay. If you notice in FreeMedSuppQuotes’ Medicare supplement comparison chart, Medicare plan N has asterisks in its Medicare Part B coinsurance and copayment benefit. It means you’ll have to pay up to $20 (can be lower) in each doctor visit and up to $50 in each emergency visits that don’t result in inpatient hospitalization.
To summarize Medigap plan N:
WHAT YOU WILL PAY | ||
| Original Medicare only | With Medigap Plan N | |
| Part A coinsurance and hospital costs: Day 61 – 90 Days 91 and beyond | ||
| $341/ day | None | |
| $682 per each lifetime reserve days | None | |
| Medicare Part B coinsurance and copayment | 20 % for most doctor visits, outpatient services, and durable medical equipment | Only up to $20 for some office visits and up to $50 for emergency room visits |
| Blood (first 3 pints) | Pay for the first 3 pints of blood (Medicare will cover the rest) | None |
| Part A hospice care coinsurance or copayment | You’ll pay no more than $5 for each prescription drug. Pay 5% of the Medicare-approved amount for inpatient respite care | None |
| Skilled nursing facility coinsurance Day 21-100 | $170.50 | None |
| Medicare Part A deductible | $1,364 | None |
| Medicare Part B deductible | $185 | $185 |
| Part B excess charge | pay out of pocket that 15% above the allowable rate | pay out of pocket that 15% above the allowable rate |
There are states that don’t allow excess charges. You don’t have to worry about excess charges when you live in the following states:
- Connecticut
- Massachusetts
- Minnesota
- New York
- Ohio
- Pennsylvania
- Rhode Island
- Vermont
What Is Medigap Plan G?
Medigap plan G is another popular Medicare supplement plan that is often compared to Plan F. It provides all benefits of Medigap except for the Medicare Part B deductible.
The following are the benefits of Medicare Plan G:
- Medicare Part A coinsurance and hospital costs
- Medicare Part B coinsurance or copayment
- Blood (first 3 pints)
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Medicare Part B excess charges
- Foreign travel emergency (up to plan limits)
What it doesn’t cover?
Medicare supplement plan G doesn’t cover only one benefit of Medigap, that is Medicare Part B deductible ($185 for 2019).
What you can expect if you have Plan G?
If you have Medicare supplement plan G, you can expect to be covered in almost all of the out-of-pocket expenses from Original Medicare. You will only pay the annual Medicare Part B deductible.
Common benefits of Medigap Plan N and Plan G
The table below shows a summary of what is common and what is different between the two plans:
Medicare Plan N vs. Plan G | ||
| Medigap Plan N | Medigap Plan G | |
| Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up | Yes | Yes |
| Part B coinsurance or copayment | Pays 100% coinsurance You will pay copayments of up to $20 for doctor visits and up to $50 for emergency room visits. | Yes |
| Blood (first 3 pints) | Yes | Yes |
| Part A hospice care coinsurance or copayment | Yes | Yes |
| Skilled nursing facility care coinsurance | Yes | Yes |
| Medicare Part A deductible | Yes | Yes |
| Part B deductible | No | No |
| Part B excess charge | No | Yes |
| Foreign travel exchange (up to plan limits) | Yes | Yes |
| The average monthly cost of the premium | $210 | $290 |
The people enrolled in Medicare Plan N vs. Plan G
According to AHIP, Medicare Supplements Plan N and Plan G continue to gain a fair amount of market share. In 2016, Medigap Plan N garnered 9% of the total population of Medigap enrollees while Medigap Plan G gained 10%.
| Percent of Enrollment in 2016 | |
| Medigap Plan N | Medigap Plan G |
| 9% | 10% |
Is Medicare Plan N better than Plan G?
Medigap Plan N premiums cost less than Medigap Plan G, that’s because it offer lesser benefits. However, Plan N still provides a good amount of coverage and manages to minimize high out-of-pocket expenses.
In considering this option, take a closer look at Part B excess charges as it might hit you hard unexpectedly. If you like traveling across different states, you’ll never know what happens. You might end up seeking medical services in places that charge 15% more than the Medicare allowable rate. Depending on the condition and services, you might end up with an out-of-pocket cost you never expected. But if on some point, this is not applicable to you then Plan N may be the right option you need.
On the other hand, Medigap Plan G covers all benefits except for the Part B deductible which is just $185 as of 2019. Medicare part B excess is also covered. If you are someone who often requires medical attention then you may be able to benefit most in this option.
If ever you decide to switch to another plan, later on, the insurance company might require you to undergo medical underwriting. Also, your application to another plan is not guaranteed to be accepted especially if you already have pre-existing conditions. So, think wisely.
For comparison of annual Medigap costs, check the Medigap Plan N vs. Plan G infographic below :
Freemedsuppquotes can help!
If you find yourself at the bottom of this post and are still unsure of what option to choose, we can help. To start with, request quotes from us to start reviewing the cost of premiums of each plan. Then one of our licensed representatives or insurance agents will reach out to you to discuss the options with you.
