Plan N vs Plan G – Which Medigap plan could save you the most money? Have you been wondering if you can save money with Plan N? If you have, you are not alone – it’s one of the plans that we get the most inquiries about.
In this video, we’ll go over the differences in benefits between Plan N and Plan G.
We’ll talk about how those differences could affect you, what the potential rate differences are, and what things you need to consider when deciding which Medigap plan might be the best fit for you.
First, let’s talk numbers.
The rates for Medigap plans vary widely across the United States. Plans in NY and FL, for example, can be nearly double the rates in some of the least expensive Medigap states.
Rates vary based on the cost of healthcare in the area in which you live, and they also vary by your age, gender, zip code, and eligibility for household zip codes, so it’s difficult to generalize it.
However, in running some numbers, we can say that Plan N premiums are generally around $15 – $30/month cheaper than Plan G in most areas.
There are some limited exceptions in certain high premium states like Connecticut, where you might find a premium different of around $50 – $60/month currently.
Now Plan N has fewer benefits than Plan G, so you have to consider the benefit differences between the two plans as well your own personal medical usage to determine which plan might be a better fit.
On Plan G, the only thing you pay out of pocket is the once annual Part B deductible
On Plan N, you pay that same deductible BUT you also pay up to $20 for doctor office visits and up to $50 for emergency visits. You pay your own excess charges.
An excess charge is a balance bill that a medical provider can send you if that provider does NOT accept Medicare’s assigned rates. They can bill you up to 15% more than Medicare’s allowed rates.
HOW TO CHOOSE
Now if I were you, here’s how I would make this decision for myself.
IF I were a person who almost never goes to the doctor and enrolling in Plan N will save me $15 – $30/month, then I might consider Plan N if my budget were really tight.
However, if I’m a person that has a medical visit every month that is going to cost me $20, then that one medical visit is going to pretty much negate most of my premium savings for Plan N. Especially when I consider that non-participating Medicare doctors can also balance bill me.
Lastly, if I’m a person with 2 or more doctor visits per month – let’s say I have a chronic health condition – then Plan G will absolutely save me money because I would rack up too many copays if I had Plan N and it would end up costing me more money per month than Plan G because of my heavier medical usage.
So that’s me giving you my own opinion on how I would break it down and what I’d do if I were in your shoes.
Some of our clients who choose Plan N at first call us back later and want to change to Plan G because all the copays and little balance bills are just annoying to them. They decide that they would rather pay slightly more to just eliminate that hassle altogether.
Now, remember, you can avoid the balance bill of the excess charges by simply asking your providers up front if they accept Medicare assignment and refusing to treat with any doctor that doesn’t accept Medicare’s allowed rates
But the reality is that people forget to ask or they might remember to ask their doctor but not their lab facility and BAM – an unexpected balance bill lands in your mailbox.
So when you are considering all the factors: your total monthly premium savings, your medical usage and whether or not you will be diligent enough to always ask about assignment, these are the things that can lead you to deciding which plan is right for you.
Do you have a question about how Plan N coverage works? Feel free to drop it in the comments below this video and we’ll answer.
Boomer Benefits provides free claims support for life for all of our Medigap and Medicare Advantage policyholders so that you are never alone in dealing with Medicare.
We are licensed in 48 states and we are a top-producing, award winning agency with over 3000 5-star reviews from Medicare beneficiaries just like you.
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