A Medigap plan supplements medical expenses that Medicare doesn’t cover. According to the American Association for Medicare Supplement Insurance, approximately 14 million Americans hold Medigap policies. This number is expected to grow as Medicare Advantage Plans drive seniors back to Original Medicare.
According to Medicare.gov, you should sign up for a Medigap plan during the one-time six-month Open Enrollment Period, which begins in the first month that you are both enrolled in Medicare Part B and are 65 or older. You cannot be refused coverage because of pre-existing health problems if you sign up during this period, and you may get a better price. If you wait, insurers may refuse to sell you a Medigap policy or charge you higher premiums.
Two popular Medigap plans are G and N. These plans have subtle differences in coverage and pricing. When choosing one, it’s important to know your health priorities and your budget.
How Medigap Plans Work
Medigap plans supplement the medical costs that original Medicare doesn’t cover. In other words, they fill in the gaps.
In contrast, Medicare Advantage plans are government-approved and can replace original Medicare.
According to Medicare.gov, Medigap policies work in tandem with original Medicare for covered services. This means that Medigap will pay some or all out-of-pocket costs (depending on the plan).
Insurers Have Same Coverage but Different Premiums
According to Medicare.gov, all Medigap plans with the same letter offer the same basic benefits. In other words, if one insurer offers Plan G, it has the same coverage as another company offering the same plan. The difference between companies is the price, not the coverage.
In most states, coverage is the same for each plan type. However, Medigap policies are standardized differently in Massachusetts, Minnesota, and Wisconsin.
What Medigap Plan G Covers
Medigap Plan G covers nearly all out-of-pocket costs that Medicare doesn’t pay. The only item that Plan G doesn’t cover is the Part B deductible.
Medigap plans sold after Jan. 1, 2020, to people new to Medicare aren’t allowed to cover the Part B deductible, according to Medicare.gov. As a result, Plans C and F (the only standardized Medigap plans that covered the Part B deductible) are no longer available to people new to Medicare.
According to Medicare.gov’s Medigap plan comparison, Plan G coverage includes:
· Part A (inpatient coverage) coinsurance and hospital costs up to 365 days after Medicare
· Part B (outpatient coverage) coinsurance or copayments
· Blood benefit (first three pints)
· Part A hospice care coinsurance or copayments
· Skilled nursing facility care coinsurance
· Part A deductible
· Part B excess charge
· Foreign travel (80 percent)
An excess charge is when a non-participating provider charges up to 15 percent more than the amount Medicare approves for the service. If your insurance doesn’t cover this “excess” charge, you’re responsible for the bill. Some states prohibit or restrict this charge, according to state laws.
Medicare.gov’s Medigap plan comparison shows that standard Medigap Plan G does not have an annual out-of-pocket limit. Although it covers many Medicare-approved out-of-pocket costs, beneficiaries are still responsible for the Part B deductible and any costs the plan does not cover. (High-deductible Plan G has a separate deductible, but this article refers to the standard plan.)
Again, all companies with Plan G have the same coverage; only the premium differs.
What Medigap Plan N Covers
Medigap Plan N is also prohibited from covering the Medicare Part B deductible. According to Medicare.gov’s Medigap plan comparison, it covers:
· Part A coinsurance and hospital costs up to 365 days after Medicare
· Part B coinsurance or copayments
· Blood benefit (first three pints)
· Part A hospice care coinsurance or copayments
· Skilled nursing facility care coinsurance
· Part A deductible
· Foreign travel (80 percent)
The Difference Between Plan G and Plan N
There are two major differences between Plan G and Plan N. One of them is the excess charge. Plan N doesn’t cover this, while Plan G does.
There are also, with Plan N, copays for doctor visits. For example, although it pays 100 percent of the cost of Part B coinsurance, you must pay a copayment of up to $20 for some office visits. You also must pay up to $50 for emergency room visits when you aren’t admitted as an inpatient.
Plan G doesn’t require copayments.
Which Medigap Plan Makes Sense for You?
Many people look at the difference in premium and determine that the lower one is the right choice. But this may not be necessarily correct. A lower premium could result in higher healthcare costs. It all depends on your health.
We used Mutual of Omaha premiums for Plan G and Plan N to estimate the cost and savings of the two plans.
For example, Mutual of Omaha’s premium for Plan G for Washington County, Pennsylvania, starts at $229.52 per month. The insurer’s premium for Plan N, meanwhile, starts at $148.49 per month. Keep in mind that premiums vary according to your circumstances and location. So, your Mutual of Omaha premium may differ based on your location.
In addition to these premiums, you must also pay your Medicare premium, which in 2026 is $202.90 per month. And you’ll need to purchase a drug plan. This is true for all Medigap plans.
When choosing a plan, knowing your healthcare needs is a vital part of the equation.
Based on Mutual of Omaha’s premium for Washington County, Plan G saves you money only if you have approximately 49 doctor visits a year, about 20 emergency room visits, or a mix of the two. For a healthy person, Plan N seems to come out ahead, though this does not account for savings you may obtain from excess charge coverage with Plan G.
That’s because the difference between the two plans is $972.36 per year. But if you aren’t a healthy person, the copays in Plan N will increase your healthcare costs.
When determining which plan to purchase, you must not only look at your history and current health but also anticipate future healthcare needs and costs.
The Epoch Times copyright © 2026. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
