There’s no denying that healthcare is expensive, and keeps getting more expensive. Medicare provides a shield for your hard-earned savings, but it can’t cover every cost. Medicare Supplements exist to provide additional coverage for leftover Medicare costs – they can be absolutely essential for keeping overall healthcare costs lower.
When selecting a Medicare Supplement that’s best for your needs, it’s important to consider as many factors as possible. As of this time of writing, there are 10 types of Medicare Supplement plans available to enrollees. The amount of coverage these plans provide scales with the overall cost of the Medicare Supplement plan.
The most popular plan for Medicare Supplements is known as Plan G, which provides 100% coverage for remaining healthcare costs after Medicare except for the Part B Deductible (as well as foreign travel expenses). These plans are commonly used because they provide the most coverage of all the Medicare Supplement plans, but this comes at a cost: Medicare Supplement Plan G is often the most expensive.
As such, some beneficiaries pivot to Plan N, which provides similar complete coverage for your Part A coinsurance, Part B coinsurance, etc., but does not cover the Part B Deductible and excess charges associated with Part B. These excess charges come from when providers do not cover Medicare. This amount can’t exceed 15% of the Medicare cost for the treatment.
| 2024 Medicare Supplement Plans: Plan G vs. Plan N (www.cms.gov) | ||
| Benefits | Plan G | Plan N |
| Part A coinsurance and hospital costs | 100% | 100% |
| Part B coinsurance or copayment | 100% | 100% |
| Blood (first 3 pints) | 100% | 100% |
| Part A Hospice Care coinsurance or copayment | 100% | 100% |
| Skilled nursing facility care coinsurance | 100% | 100% |
| Part A Deductible | 100% | 100% |
| Part B Deductible | 0% | 0% |
| Part B Excess Charges | 100% | 0% |
| Foreign travel emergency (up to plan limits) | 80% | 80% |
Perhaps the biggest reason some recipients of Medicare switch from a Plan G to a Plan N is that Plan N is significantly less expensive per month. This differs between insurance companies, but overall Plan N provides similar coverage to Plan G at a lower cost. Part B excess charges are statistically unlikely, due the overwhelming majority of healthcare providers that accept Medicare in 2024.
With all this in mind, Plan G also has its clear benefits. It provides the most coverage of all the Medicare Supplements, so it can be valuable to beneficiaries who regularly go to the doctor. To some, Plan G provides peace of mind because it has the most coverage. Choosing which Medicare Supplement is best for you should be done on a case-by-case basis. As always, we are happy to help you navigate this decision!
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A non-government entity. Not affiliated with or endorsed by any government agency. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.