Now that you understand why Medigap is usually the better path, the next question is: which plan letter and which carrier? This lesson gives you a clear framework for both decisions.
The Plan Letter Decision: Plan G vs. Plan N
Plan G and Plan N are the two most popular Medigap plans for new enrollees in 2026. They cover the same core benefits with a few key differences:
| Feature | Plan G | Plan N |
|---|---|---|
| Part B deductible ($283/yr) | NOT covered (you pay it) | NOT covered (you pay it) |
| Part B coinsurance (20%) | Covered 100% | Covered (with small copays) |
| Part B excess charges | Covered | NOT covered |
| Office visit copay | $0 | Up to $20 |
| ER copay (not admitted) | $0 | Up to $50 |
| Monthly premium difference | Higher | $40-60/month less |
| Best for | Zero surprises, peace of mind | Healthy, budget-conscious |
The Math: Plan G vs. Plan N
- Plan N saves: ~$40-60/month ($480-720/year) in premiums
- Plan N costs you: Up to $20 per office visit + up to $50 per ER visit (if not admitted) + potential excess charges
- If you see the doctor 6 times/year: 6 × $20 = $120 in copays
- Net savings with Plan N: Approximately $360-600/year for most people
If you rarely go to the doctor, Plan N saves money. If you have frequent visits or want zero hassle, Plan G is simpler.
How to Evaluate Carriers: The 5 Factors
Premium Price
Get quotes from at least 3-5 carriers. Premiums for the same Plan G can vary by $50-100/month between carriers in the same ZIP code.
Rate Increase History
A carrier with a low introductory rate but 15% annual increases is worse than one with a moderate rate and 3-4% increases. Ask for the carrier's rate increase history over the past 5 years.
AM Best Financial Rating
Look for A- or higher. This measures the carrier's ability to pay claims long-term. A+ or A++ is ideal.
NAIC Complaint Ratio
Below 1.0 means fewer complaints than the national average. Below 0.5 is excellent. This measures customer satisfaction and claims handling.
Household/Multi-Policy Discounts
Many carriers offer 5-12% discounts if both spouses enroll or if you bundle with other policies.
Pricing Methods: How Carriers Set Rates
My recommendation for most new enrollees: start with Plan G. Yes, Plan N can save you money, but Plan G eliminates all decision-making. You never wonder if a visit will cost you a copay, you never worry about excess charges, and you never have to think about whether to go to the ER. That peace of mind is worth $40-60/month to most people. If budget is tight, Plan N is an excellent plan — just understand the trade-offs.
Find the Top Carriers in Your State
Rates vary significantly by ZIP code. Enter yours to see personalized quotes from top-rated carriers in your area.
Knowledge Check
Answer all questions to unlock the next lesson
Q1.What is the main difference between Medigap Plan G and Plan N?
Q2.When comparing Medigap carriers, which factor is MOST important for long-term value?
Q3.Two carriers offer Plan G in your ZIP code. Carrier A charges $130/month with 12% average annual increases. Carrier B charges $160/month with 3% average annual increases. After 5 years, which is likely cheaper?
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