Medicare Supplement Plan G vs Plan N: What You Pay, What You Get, and What to Consider

• Choosing a Medicare supplement insurance plan can be a challenging task, and it is essential to compare the differences in coverage, premiums, and out-of-pocket expenses.
• Medicare Plan G has long been a popular choice for Medicare supplement coverage, but Plan N offers similar protection with a lower monthly premium and greater potential for savings for some enrollees.
• Plan N coverage may include copays for some services and does not cover Part B excess charges, making Plan G a better option for those who want more protection from surprise medical expenses.
• Mutual of Omaha — one of the most recognized names in the insurance industry — offers a variety of Medicare supplement plans, including Plan G and Plan N supplemental coverage in many parts of the country.

Retiring is an exciting rite of passage, but before you can kick back and enjoy this new chapter of your life, you will most likely have to navigate the complicated process of signing up for Medicare coverage. Signing up for Medicare involves a multitude of strict rules and time-sensitive deadlines — and that’s before you even consider that you have to choose from a menagerie of coverage plans that may be difficult to change later down the road.

Original Medicare can be limiting because it only covers 80% of costs, leaving the remaining 20% of the tab on the consumer’s hands. Many retirees face the reality of a fixed income, and surprise medical expenses can add up quickly. A Medicare supplement plan can help cover any gaps in Medicare’s coverage. It can still seem daunting to sort through all the potential supplemental plans, but one plan has long stood out for providing Medicare supplement coverage: Medicare Plan G.

Plan G is a supplemental plan offered by private insurance companies to Medicare enrollees that works in partnership with your Medicare Part A and Part B coverage to ensure you’re not hit with surprise medical expenses. Medicare Plan G typically offers broad protection, predictable costs, and minimal surprises for many retirees. Because the benefits provided by Medicare supplemental plans are standardized by the federal government, retirees can rest assured that the basic coverage for each plan remains the same, though some insurance companies may offer extra features or different monthly premiums.

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Despite Plan G’s popularity, it is not the only option for Medicare supplement coverage. Medicare Supplemental Plan N, for example, has also become a more compelling option in recent years for retirees who may be willing to pay more out of pocket for modest copays in exchange for a lower monthly premium.

Mutual of Omaha offers a variety of Medicare supplement plans, including the popular Plan G and Plan N. Both plans help cover the gaps Medicare leaves behind. They both have no networks or referrals, allowing you to keep your doctors (as long as they accept Medicare). Both plans also provide skilled nursing, hospice care, and foreign travel emergency care coverage.

However, there is a significant difference between the two plans and the coverage they provide with regard to Medicare Part B. Plan N does not cover Part B excess charges or the Part B deductible or copay. This difference is what makes Plan N a more affordable option upfront than Plan G.

Before you decide which Medicare supplemental plan is right for you, let’s look over how premiums and copays compare for Medicare Plan G and Plan N:

For healthy retirees, the Medicare Supplemental Plan N from Mutual of Omaha can offer a savings of approximately $50 per year when compared to Plan G, keeping more money in your budget for you to spend on your retirement as you see fit. However, if you find that you require medical care from doctors and hospitals more frequently or you do not have the budget to adjust for unexpected medical copays when the need to receive care arises, Plan G may still be the better solution. Plan G ultimately requires more money upfront in the form of higher premiums, but its broad coverage and lack of copays can provide peace of mind. Meanwhile, Plan N benefits from cost-sharing solutions that result in lower premiums.

Despite their differences, retirees can rest assured that both Plan G and Plan N Medicare supplement plans feature identical core benefits thanks to standardized rules. That standardization can help alleviate some concerns when choosing between supplemental plans, leaving you to worry less about whether vital services are part of your coverage. Instead, you can choose to focus more on selecting a supplemental plan that best fits your financial needs.

Medicare Plan G vs Plan N FAQ

Q: What’s the difference between Medicare Plan G and Medicare Plan N?

A: Both supplemental medicare plans adhere to federal standards and are available across much of the country through private insurance providers like Mutual of Omaha. However, the difference between these two plans boils down to the upfront cost of monthly premiums. Plan G typically costs more upfront, with slightly higher monthly premiums. Plan N costs less as far as monthly premiums are concerned, but enrollees can incur extra costs via copays if doctor visits are frequent.

Q: Which Medicare supplement plan has lower premiums, and is it worth the trade-off?

A: The perceived value of the two Medicare supplement plans depends on how frequently the enrollee seeks medical treatment. Plan N offers a lower monthly premium, which may be a more worthwhile trade-off for healthy retirees who do not frequently visit their doctor. Enrollees who have frequent doctor or ER visits may want to skip the risk of unexpected copays for visits and instead pay a slightly higher premium for the peace of mind that there are no surprise costs when going to the doctor.

Q: What are the pros and cons of Medicare Plan G compared to Plan N for retirees on a fixed income?

A: For retirees on a fixed income, surprise expenses can completely disrupt the financial comfort of your daily life. Medicare Plan N offers lower upfront costs that can be enticing for healthy enrollees, but the risk of frequent doctor visits increasing out-of-pocket expenses can pose a problem if the fixed income does not have enough room to allow for unexpected copays. Medicare Plan G can provide peace of mind that there will not be surprise expenses attached to needed medical care, but the slightly higher monthly premium creates an upfront cost that can also put strain on a fixed income.

Q: What does Medicare Plan G cover that Plan N doesn’t?

A: Plan G covers nearly all Medicare-approved costs besides the Part B deductible, including Part B excess charges, while Plan N does not cover Part B excess charges at all. Plan G does not require retirees to pay copays for office visits or trips to the ER that do not result in a hospital admission. Plan N is able to offer a lower monthly premium at the expense of cost-sharing: $20 for office visits and $50 for ER visits when not admitted.

Q: Do Medicare Plan N and Plan G have copays when you see a specialist?

A: Medicare Plan N lowers its monthly premiums by requiring copays for office visits, capped at $20 per visit. This copay is required for Plan N enrollees even when visiting specialists. However, Plan G does not require a copay for office visits, even for specialists.