When comparing Medicare Plan N vs Plan G, there are many things to consider. The daunting task of familiarizing yourself with Medicare and your options can be a bit intimidating.
But that’s why we are here, to make things a little easier on you so you can make the best choice regarding one of the most important decisions in your life. About 10,000 seniors are aging into Medicare daily, and many of them are choosing Medigap Plans to cover the costs left over by Medicare.
In a nutshell, Medicare basically covers 80% of the bill and the additional costs could be substantial. Medigap Plans help by covering all or most of these costs, depending on the plan you choose.
All states have the same standardized plans, with exception to Minnesota, Wisconsin, and Massachusetts, that have different options than the rest of the country.
These plans are designated by letters and the coverage is exactly the same regardless of which carrier you choose. What this means no matter where you are in the United States… Plan G is Plan G, and the coverage is exactly the same despite state or carrier.
Below, we’ll compare Medicare Plan N vs Plan G side by side to help you understand the differences.
Comparing Medicare Plan N vs Plan G
Plan N is growing in popularity and is considered by many as the most affordable, full-coverage plan option. You’re responsible for paying the Part B deductible. In addition, you’re responsible for a $20 copay for the doctor, including specialists, and $50 for the emergency room. However, if you go to urgent care, you won’t have any co-pay.
The only thing that leaves you vulnerable to is excess charges. An excess charge is an additional 15% that a provider can charge above the Medicare-approved amount. These are not common as more than 90% of providers accept Medicare assignment, meaning they agree not to charge the excess charge.
The savings of being on Plan N is quickly making it grow in popularity. If you’re relatively healthy, this is one of the best options for you.
Plan G is currently the most popular plan in Medicare. This is because the beneficiary usually saves significantly more money every year by paying their own Part B deductible.
Not to mention, Plan G rate increases have traditionally been less. Thus, making the value that much greater for the beneficiary. Plan G is also staying intact in 2020, unlike Plan F.
When it comes to Medigap Plans most people choose between Plan N, Plan G, and Plan F. There is a very good reason why these plans are the most popular, they are the most comprehensive.
Comparing Medicare Plan N vs Plan F
For many years Plan F has been the most popular. That’s because anything Medicare covers, Plan F covers the remaining out of pocket costs. For example, if you have a $100,000 surgery where Medicare leaves you with about $20,000, Plan F covers every penny.
Plan F is considered first-dollar coverage, all first-dollar coverage plans are going to be discontinued in the year 2020 as part of the Medicare Access and CHIP Reauthorization Act of 2016.
Beneficiaries on first-dollar coverage plans will be able to keep their plan, there’s no need to go switching plans unless you’re just looking for a better premium price. Also, as long as you’re Medicare eligible before 2020, you can continue to enroll in first-dollar coverage plans after they are discontinued.
Since the High Deductible Plan F is being discontinued other first-dollar plans, the High Deductible Plan G is going to hit the market in 2020. We expect to find out more when it gets closer to that time.
What is the Difference Between Plan G and Plan N
The only difference between Plan G and Plan N is that Plan N doesn’t cover excess charges and has a $20 copay for doctor visits and a $50 copay for emergency room visits. Plan G covers excess charges and does not require small copays as Plan N does.
What is the Difference Between Plan F and Plan N
The difference between Plan F and Plan N is that Plan F covers excess charges, the Part B deductible, and doesn’t have small copays like Plan N. However, if you didn’t become eligible for Medicare until after 2020, you won’t be able to enroll in Plan F. You’re next best option would be Plan G if you don’t want to worry about small copays.
What is the Difference Between Plan G and Plan F
The only difference between Plan G and Plan F is the Part B deductible. Plan F covers the Part B deductible while Plan G does not.
What Else Do I Need to Know When Comparing Medicare Plan N vs Plan G vs Plan F
The best time to enroll is during your Open Enrollment Period. Medicare beneficiaries should start shopping for Medigap options as soon as they’re getting ready to enroll in Part B.
Beneficiaries have 6 months after enrolling in Part B to review and shop for the best Medigap Plan to meet their needs and budget, without going through medical underwriting.
You can still apply after the first six months, you’ll just have to answer some health questions during the application.
If you’re enrolled in a Medicare Advantage Plan, you cannot enroll in a Medigap Plan. They are many reasons why beneficiaries choose a Medigap Plan over a Medicare Advantage Plan.
None of the Medigap Plans include coverage for drugs. You’ll want to pick up a stand-alone Part D plan to cover prescriptions.
It is important to choose a highly rated carrier and plan when you’re starting Medicare. You can anticipate a stable rate increase over the future when selecting a credible carrier.
Unfortunately, we do not get healthier as we age and this is one of the most important choices for your health and financial needs going forward.
Don’t Make the Mistake of Waiting to Enroll Until You Need It
Another important fact to remember, the longer you wait to enroll in Part B, the higher the premium will be when you do enroll. There’s a late enrollment penalty for both Part B and Part D. This penalty can quickly add up.
The reason for the penalty is to discourage new enrollees from waiting until they need coverage to enroll. Most don’t understand that they’re only granted guaranteed issue for the first six months they’re eligible for coverage.
So, if you want until you need it… you have two things fighting against you. The penalties for waiting and the impact of pre-existing conditions on your premium and approval odds.
For more information on Medicare Supplement Plans, give us a call. You can also compare rates in your area using our online rate form.