The Best Medicare Supplement? Plan F vs Plan G vs Plan N
Plan F vs Plan G vs Plan N
What’s the best Medicare supplement plan?
There are more than 10 different types of Medicare supplements people can buy. But 3 are much more popular than the rest. Plan F, Plan G, and Plan N.
So which one should you pick?
Let’s start with how each one works first. Then we can compare pricing and coverage to see what makes the most sense for you.
Plan F
Plan F is the most comprehensive Medicare supplement you can buy. This isn’t officially known as this but I like to think of Plan F as FULL COVERAGE.
It covers:
- Medicare Part A deductible – $1,484 in 2021
- Medicare Part B deductible – $203 in 2021
- Part A coinsurance/copayments
- Part B coinsurance
- Part B excess charges
- Foreign Travel Emergency coverage
That’s a big list which is why it’s the most comprehensive supplement.
How does it actually work?
Plan F helps pay what Medicare doesn’t pay. If you have a Plan F, then you will NOT be responsible for paying a medical bill that Medicare covers.
About 55% of all people that have a Medicare supplement have a Plan F.
But if you are just starting Medicare in 2020 or later then you likely cannot get a Plan F due to a change in the law back in 2015.
Plan G
This isn’t officially known as this but I like to think of Plan G as GREATEST VALUE.
- Medicare Part A deductible – $1,484 in 2021
- Part A coinsurance/copayments
- Part B coinsurance
- Part B excess charges
- Foreign Travel Emergency coverage
Plan G is also a very comprehensive plan. And for most people starting Medicare in 2020 or later, it’s the most comprehensive plan they can get.
It works the exact same way as Plan F with 1 exception. It does NOT cover the Medicare Part B deductible.
So if you have a plan G, you are responsible for paying the Medicare Part B deductible ($203 in 2021) once per year before Medicare coverage kicks in.
If you have a Plan G, then you will NOT be responsible for paying a medical bill that Medicare covers after you’ve paid your Medicare Part B deductible.
Roughly 13% of people on a Medicare supplement have a plan G making it the second most popular plan.
Plan N
Plan N is the 3rd most popular Medicare supplement but it works a bit different than G or F. This isn’t officially known as this but I like to think of Plan N as NOT FIXED.
Instead of listing what it covers, it’s easier to list the differences. Here are the things you are responsible for paying on a Plan N that you would not pay on a Plan F.
- Medicare Part B deductible ($203 in 2021)
- After deductible, up to a $20 copay for doctor visits
- After deductible, up to a $50 copay for emergency room visits
- Part B excess charges – see below for explanation
Part B excess charges is an extra bill charged by doctors that accept Medicare but not Medicare assignment. This is a fancy way of saying they will accept Medicare but reserve the right to charge an extra 15% on top of what Medicare pays.
Plan F and Plan G cover excess charges so you don’t need to worry about paying that.
But with Plan N, you are responsible for paying those excess charges.
Most doctors and hospitals nationwide do NOT charge excess charges, but it is possible so it’s important to know ahead of time that you may have some extra costs.
About 10% of people on a Medicare supplement have a Plan N.
Letter of the Plan determines coverage
This is important to know because the letter of the plan determines the coverage level for your Medicare supplement.
NOT the insurance company.
The insurance company does not choose the coverage levels. Or how/if they should pay claims. That is all determined by Medicare by the letter of the plan.
The insurance company does get to choose how much to charge for that Medicare supplement.
Here’s what Medicare says about it in their 2020 Guide to Health Insurance for People with Medicare.
“Cost is usually the only difference between Medigap policies with the same letter sold by difference insurance companies.” – page 9
“There can be big differences in the premiums that different insurance companies charge for exactly the same coverage.” – page 19
Which Medicare supplement plan should you choose?
Those are the 3 most popular standardized Medicare supplements.
In Wisconsin, Medicare supplements are different than all other states. They are the same from company to company, but you need to build your coverage with riders instead of just picking a plan letter.
But which one should you choose?
First let’s look at Plan F vs Plan G
The only difference here is the Medicare Part B deductible. So we need to compare monthly premiums. We know the Medicare Part B deductible is $203.
Which means if a Plan G will save us more than $203 per year, we should absolutely do choose plan G.
I had this happen with a person recently where Plan F was $600 more per year than plan G. So basically they were paying an insurance company $600 each year to pay her $203 deductible for her. Once she realized this, she quickly switched and kept the money for herself.
Comparing prices shows that G is almost always the winner here.
Plan G vs N
Both Plan G and N mean you are responsible for paying your Part B deductible.
But after reaching that deductible, you are done with Plan G.
With Plan N, this is where the “Not Fixed” costs come in. You have 3 additional costs which are:
- a $20 copay for doctor visits,
- a $50 copay for emergency room visits,
- and Part B excess charges.
For that reason, Plan N needs to be at least $25 less per month than Plan G to even consider it.
Best Medicare Supplement? Here’s my recommendation
In most cases, I believe starting with Plan G makes the most financial sense because it isn’t that much more than Plan N. But it gives you the predictability of knowing your worst case scenario is paying the Medicare Part B deductible each year.
There are cases where Plan N or Plan F make more sense. But G is the plan that most often makes the most sense for people to choose.
Call me at 855-712-7316 or Email me at Mike@askMedicareMike.com to see pricing for supplements from more than 20 companies so you can pick.
Mike Lovell