Plan G vs. Plan N: Why Medicare Plan G Usually Costs More: A Guide

When comparing Medicare Supplement (Medigap) plans, many people notice that Plan G typically has a higher monthly premium than Plan N. The difference in cost is largely due to the level of coverage each plan provides. While both plans help pay certain out-of-pocket costs not covered by Original Medicare, Plan G generally offers more comprehensive coverage.

What Is Medicare Supplement Insurance?

Medigap policies are sold by private insurance companies and are designed to help cover certain costs that Original Medicare does not pay.

Depending on the plan, coverage may include:

• Medicare Part A coinsurance
• Medicare Part B coinsurance
• Hospital costs after Medicare benefits are exhausted
• Skilled nursing facility coinsurance
• Foreign travel emergency coverage (subject to plan limits)

Benefits are standardized in most states, although premiums vary by insurer.

Why Plan G Has Higher Premiums

Plan G generally costs more because it offers broader coverage.

Compared with Plan N, Plan G typically:

• Covers Medicare Part B excess charges
• Has fewer out-of-pocket costs after the annual Part B deductible is met
• Provides more predictable healthcare expenses
• Reduces unexpected medical bills for eligible services

Because of this additional protection, insurers often charge higher monthly premiums.

How Plan N Differs

Plan N usually has a lower monthly premium but includes some cost sharing.

Depending on the situation, beneficiaries may be responsible for:

• Certain copayments for some office visits
• Copayments for some emergency room visits that do not result in hospital admission
• Medicare Part B excess charges, when applicable

Actual costs depend on the healthcare services received.

Factors That Affect Premiums

Monthly Medigap premiums vary based on several factors, including:

• Age
• Geographic location
• Insurance company
• Pricing method
• Tobacco use (where permitted)
• Household discounts offered by some insurers

Even for the same standardized plan, premiums can differ between companies.

Which Plan May Be a Better Fit?

The choice between Plan G and Plan N depends on individual circumstances.

Some people prioritize:

• Lower monthly premiums
• Predictable out-of-pocket costs
• Frequency of healthcare visits
• Provider billing practices
• Long-term healthcare budgeting

Comparing expected annual costs—not just monthly premiums—can provide a more complete picture.

Questions to Consider

Before selecting a Medigap plan, it may be helpful to consider:

• How often medical care is needed
• Whether healthcare providers accept Medicare assignment
• Expected annual medical expenses
• Monthly budget
• Available plans in the local area

These factors may influence overall value.

Enrollment Timing

The best time to purchase a Medigap policy is often during the Medigap Open Enrollment Period, when guaranteed issue rights generally apply.

Outside certain enrollment periods, medical underwriting may be required in many states.

Conclusion

Plan G generally costs more than Plan N because it provides broader coverage and typically results in fewer out-of-pocket expenses after the Medicare Part B deductible has been met. Plan N offers lower monthly premiums but may involve copayments and, in some cases, Part B excess charges. Comparing total expected healthcare costs, coverage needs, and available premiums can help beneficiaries determine which Medigap plan best aligns with their individual circumstances.