Key differences in Medigap plans

Comparing the coverage of Medigap plans G and N

If you have read up on the changes in Medicare for 2020, you have likely heard Medigap plans C and F are no longer offered to new Medicare beneficiaries.

For most, this was an unwelcome bit of news because these plans offered the most comprehensive coverage. But Medicare no longer allows Medigap (Medicare Supplement) plans to pay for Medicare Part B’s deductible. So, this has lead to Supplements C and F to be discontinued unless you already own these plans.

For new Medicare beneficiaries, the new “best” plans will be G and N. While they don’t cover Part B’s deductible, they do offer impressive coverage.

But which one should you choose?

The key differences between Medigap plans G and N

When it comes to these two plans, the question you’ll be asking yourself is, “How much do I value convenience?”

If you just want to pay a monthly premium and worry less about out-of-pocket expenses, Medigap Plan G is going to be your best bet. It’s likely the better of the two for those who make more visits to the doctor or hospital.

If you don’t make many trips to the doctor and don’t mind some cost-sharing when you do, Plan N may make more sense.

Here’s how the two break down when it comes to coverage:

Medigap Plan G — Covers 100% of Medicare Part A’s coinsurance and hospital costs, of Medicare Part B’s coinsurance or copay, of the first three pints of blood, Part A’s hospic care coinsurance or copay, skilled nursing facility care, Medicare Part A’s deductible, and Part B’s excess charges. It also covers 80% of a foreign travel emergency.

Medigap Plan N — Covers 100% of everything Plan G does EXCEPT Part B’s excess charges. Excess charges is what Medicare allows doctors to charge above the normal cost of care that Medicare covers. Plan N does also cover 80% of a foreign travel emergency.

Hopefully, this has helped you understand more about these two plans. As always, you should discuss your decision with a licensed Medicare agent, like the ones here at Expert Insurance Team, to make sure your needs are well covered.