Plan G and Plan N are the two most popular Medigap options for people newly eligible for Medicare, and they’re close enough in coverage that choosing between them is one of the most common questions we hear. This article breaks down the real differences and does the break-even math for you.
Side-by-Side Coverage Comparison
| Benefit | Plan G | Plan N |
|---|---|---|
| Part A coinsurance/hospital costs | 100% | 100% |
| Part B coinsurance | 100% | 100%, except small copays |
| Part B deductible | Not covered (you pay it) | Not covered (you pay it) |
| Part B excess charges | Covered | Not covered |
| Skilled nursing coinsurance | 100% | 100% |
| Foreign travel emergency | 80% | 80% |
| Doctor visit copay | $0 | Up to $20 per visit |
| ER visit copay (not admitted) | $0 | Up to $50 per visit |
| Typical monthly premium | Higher | Lower (often 15–30% less) |
The Big Difference: Part B Excess Charges
This is the most overlooked distinction between the two plans. Some doctors don’t accept “Medicare assignment,” meaning they can legally charge up to 15% more than the Medicare-approved amount — this extra amount is called an excess charge. Plan G covers these excess charges in full. Plan N does not, leaving you responsible for that difference if your provider charges above the Medicare-approved rate.
The Break-Even Math
Let’s say Plan G costs $200/month ($2,400/year) and Plan N costs $155/month ($1,860/year) — a $540 annual savings with Plan N. To “lose” that savings back through copays, you’d need roughly 27 doctor visits at $20 each, or a combination of doctor visits and ER trips that add up to $540 in copays over the year. For most retirees, even with several specialist visits a year, Plan N’s copays rarely exceed the premium savings — which is why Plan N has grown quickly in popularity even though Plan G remains the single most-purchased plan overall.
Who Should Choose Plan G?
- People who see doctors frequently and want zero unpredictability in costs
- People with chronic conditions requiring regular specialist visits
- People who see providers who might not accept Medicare assignment
- People who strongly prefer simplicity over optimizing for savings
Who Should Choose Plan N?
- Generally healthy retirees who see doctors only occasionally
- Budget-conscious shoppers comfortable with small, predictable copays
- People living in states that restrict excess charges by law
- People who want Medigap-level protection at a lower ongoing cost
How to Decide for Your Situation
Start by estimating how many doctor visits and any ER trips you typically have per year, multiply by the relevant copay, and compare that total against the annual premium difference quoted by carriers in your area — see our state-by-state cost guide for typical ranges. If your estimated copays come in below the premium savings, Plan N is likely the better financial choice. If you’re unsure or your health needs are changing, Plan G’s predictability may be worth the extra premium.
Get Plan G and Plan N quotes side by side for your zip code.
Frequently Asked Questions
- Is Plan N always cheaper than Plan G overall?
- Not necessarily — it depends on how often you use care. Plan N’s lower premium can be offset by copays if you see doctors very frequently, though this is uncommon for most retirees.
- Can I switch from Plan G to Plan N later?
- Yes, though outside your Open Enrollment window this typically requires medical underwriting. See Switching Medigap Plans for the full process.
- Does Plan N cover the Part B deductible?
- No. Like Plan G, Plan N does not cover the annual Part B deductible — you pay that amount out of pocket before Medicare’s coinsurance coverage applies.
