Key Takeaway

Medicare supplement Plan G, Plan N, and Plan F are standardized policies that help cover out-of-pocket costs Original Medicare does not pay. Plan F offers the most comprehensive coverage but is only available to those eligible for Medicare before 2020. Plan G is nearly identical but requires you to pay the Part B deductible. Plan N has lower premiums but includes copays for doctor visits and emergency room trips. Understanding these differences helps you balance monthly costs against potential out-of-pocket expenses.

What Are Medicare Supplement Plans?

Medicare supplement insurance, also called Medigap, helps fill the gaps in Original Medicare (Parts A and B). Original Medicare covers many healthcare services, but it leaves beneficiaries responsible for deductibles, coinsurance, and copayments that can add up quickly.

According to the Centers for Medicare & Medicaid Services, Medigap policies are sold by private insurance companies and follow standardized benefit designs set by federal regulation. Plans G, N, and F are among the most popular options, each offering different combinations of coverage and cost.

Plan F: The Most Comprehensive (But Limited) Option

Plan F provides the most complete coverage of any Medicare supplement plan. It covers all Medicare Part A and Part B deductibles, coinsurance, copayments, and even excess charges when doctors charge more than Medicare’s approved amount.

However, Plan F comes with a major restriction: it is only available to people who became eligible for Medicare before January 1, 2020. The Medicare Access and CHIP Reauthorization Act of 2015 prohibited the sale of Medigap plans that cover the Part B deductible to new Medicare beneficiaries.

For those eligible, Plan F typically carries the highest monthly premiums because of its comprehensive benefits. You pay more upfront but face virtually no out-of-pocket costs when you receive Medicare-covered services.

Plan G: Nearly Identical to Plan F

Plan G offers nearly the same benefits as Plan F, with one key difference: it does not cover the Medicare Part B deductible ($257 in 2024, subject to annual adjustment).

This single exclusion makes Plan G available to all Medicare beneficiaries, regardless of when they became eligible. It has become the most popular choice for new enrollees since Plan F was restricted in 2020.

Plan G typically has lower monthly premiums than Plan F. Many beneficiaries find that the annual premium savings exceed the Part B deductible they must pay out of pocket, making Plan G the more cost-effective choice even for those eligible for Plan F.

After you meet the Part B deductible each year, Plan G covers the same benefits as Plan F, including Part A deductible, skilled nursing facility coinsurance, foreign travel emergency coverage (up to plan limits), and Part B excess charges.

Plan N: Lower Premiums with Modest Copays

Plan N takes a different approach by trading lower monthly premiums for specific out-of-pocket costs at the point of service.

Like Plan G, Plan N does not cover the Part B deductible. Additionally, Plan N includes copayments of up to $20 for office visits and up to $50 for emergency room visits (waived if you are admitted). Plan N also does not cover Part B excess charges.

For beneficiaries who do not visit the doctor frequently and are comfortable with predictable, modest copays, Plan N can offer significant premium savings compared to Plans F and G. The lower monthly cost makes it attractive for healthier seniors or those on fixed incomes who want to reduce their ongoing insurance expenses.

As foundational texts such as Principles of Finance explain, insurance decisions involve balancing premium costs against potential out-of-pocket exposure based on individual health status and risk tolerance.

Using a Calculator to Compare Your Options

The differences between Plans G, N, and F involve multiple cost factors: monthly premiums, annual deductibles, copayments, and coverage of excess charges. Your total annual cost depends on your expected healthcare utilization, not just the premium.

A Medicare supplement cost estimator helps you compare these plans side by side based on your specific situation. By entering your expected number of doctor visits, potential hospitalizations, and current health status, the calculator projects your total annual costs under each plan, including both premiums and out-of-pocket expenses.

This comparison is especially valuable because premium costs vary significantly by insurance company, location, age, and other factors. The calculator helps you see whether a lower-premium Plan N will save you money overall, or whether Plan G’s more comprehensive coverage justifies its higher monthly cost given your healthcare needs.

Making an Informed Decision

Choosing among Medicare supplement plans requires balancing predictability against cost. Plan F eliminates nearly all out-of-pocket costs but carries the highest premiums and limited availability. Plan G offers similar comprehensive coverage with slightly lower premiums. Plan N reduces monthly costs but introduces modest copays.

Your best choice depends on your healthcare utilization patterns, budget, and preference for predictable costs. The Medicare plan comparison tool helps you evaluate these trade-offs with real numbers specific to your situation.

Remember that Medigap policies are guaranteed renewable as long as you pay premiums, but coverage rules, premiums, and deductibles can change annually. Always verify current terms with a licensed insurance agent and review your coverage during Medicare’s annual enrollment period to ensure it still meets your needs.

This information is educational and general in nature. It is not personalized insurance, financial, or medical advice. Medicare supplement rules, premiums, and availability vary by state and insurance carrier. Consult a licensed Medicare insurance agent and refer to current plan documents and the Medicare plan comparison tool at Medicare.gov before making coverage decisions.