Understanding the Medicare Supplement Plan “N”
How does it compare to the Medicare Supplement Plan “G”?
One of the most underrated Medicare Supplements (Medigap) is the supplement Plan N. Like the supplement Plan G, Plan N offers strong protection against the financial gaps in Original Medicare. In this article I will discuss the differences and provide important information that will help you make the best decision possible when it comes to deciding which supplement is right for you.
In this article, we’ll explore:
What Medicare Supplement Plan N covers
How Plan N compares to Plan G
What "excess charges" are and why they matter
Who might benefit most from each plan
Key questions to ask before choosing
What Does Medicare Supplement N Cover?
Medicare Supplement Plan N offers robust coverage designed to limit your out-of-pocket costs for medical care. Here’s what Plan N pays for:
✅ Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are exhausted
✅ Part B coinsurance or copayments, with a few small exceptions (see below)
✅ First three pints of blood
✅ Part A hospice care coinsurance or copayments
✅ Skilled nursing facility coinsurance
✅ Medicare Part A deductible
However, Plan N does not cover:
The Medicare Part B deductible ($240 in 2025)
Excess charges — fees some doctors charge above Medicare’s approved amount
Small copayments for certain services:
Up to $20 for some office visits
Up to $50 for emergency room visits (waived if admitted to the hospital)
Understanding Medicare Excess Charges
When a doctor accepts Medicare assignment, it means they agree to accept Medicare’s approved amount as full payment for covered services. But not every doctor that accepts Medicare accepts Medicare assignment.
Those doctors that do not accept assignment are allowed to charge up to 15% more than the Medicare Approved amount. This extra amount is called a Medicare Part B excess charge.
Important to know:
Plan G covers these excess charges fully.
Plan N does not cover excess charges — if you see a doctor who bills them, you will have to pay the extra amount out-of-pocket.
How common are excess charges?
Fortunately, they are very rare.
According to the Centers for Medicare & Medicaid Services (CMS), over 97% of all U.S. doctors and providers accept Medicare assignment.
Only about 3% of doctors have the ability — and choose — to bill excess charges.
In practice, most people with Plan N never encounter excess charges — especially if they stick to doctors who participate fully with Medicare.
Example: How Medicare Excess Charges Work
Let’s say you visit a specialist for a covered Medicare Part B service.
Medicare approves $200 for the visit.
If your doctor accepts Medicare assignment (like 97% of doctors do), they agree to accept only the $200 as full payment.
Medicare pays 80% ($160), and you're responsible for the remaining 20% ($40) — or your supplement covers it, depending on your plan.But if the doctor does not accept Medicare assignment, they are allowed to charge up to 15% more than Medicare’s approved amount.
In this case:
Medicare-approved amount = $200
Maximum excess charge = 15% of $200 = $30
The doctor could bill $230 total
Medicare still only pays 80% of $200 = $160
You're responsible for:
The 20% coinsurance on $200 = $40
Plus the $30 excess charge
Total out-of-pocket = $70
How This Applies to Plan G vs Plan N:
Plan G would pay both the $40 coinsurance and the $30 excess charge — you pay nothing out of pocket (after your annual deductible).
Plan N would pay the $40 coinsurance, but not the $30 excess charge — you pay that amount out of pocket.
What Are The Other Differences Between Supplement Plan G and Plan N?
For the most part, both supplements are identical. However, there are three key differences. Those differences are:
Plan G covers 100% of Medicare Part B charges after the deductible is met. With the Plan N you may incur up to a $20 copay for doctor visits and up to a $50 copay for an emergency room visit except when it results in a hospital admission.
Plan G covers 100% of excess charges, while you are responsible for any excess charges with Plan N.
Plan G is more expensive. Using the Medicare Supplement plan finder on medicare.gov, a Plan G in the 85614 zip code would cost $131 monthly with American Heritage Life for a 70-year-old male. Plan N would cost $96 with the same insurance company. That is a savings of $35 monthly or $420 annually. Over time, that can be significant.
Who Should Consider Plan N?
You may want to choose Plan N if:
You are generally healthy and don't visit doctors frequently.
You are willing to pay small copays when you do receive care.
You primarily see Medicare-assigned providers who do not charge excess fees.
You want to lower your monthly premium without sacrificing strong core coverage.
On the other hand, you may prefer Plan G if:
You want predictability with virtually no extra bills.
You may see many specialists, or live in an area where doctors commonly charge excessive fees.
You simply don’t want to worry about copays and extra charges.
Here are a few important questions to consider:
How often do I go to the doctor or specialist?
Do the providers I use accept Medicare assignment (no excess charges)?
Would occasional small copays bother me?
How much can I save annually in premium costs with Plan N versus Plan G?
Is peace of mind worth paying a little more each month?
Final Thoughts: Plan N vs Plan G
Both Plan G and Plan N offer excellent protection and peace of mind.
Choosing between them often comes down to your healthcare usage patterns and your comfort with small out-of-pocket costs.If you want maximum predictability and zero copays, Plan G may be the way to go.
If you’re healthy, want to lower your premium, and are okay with minor costs here and there, Plan N could be a smart, money-saving choice.Ready to compare your Medicare Supplement options? Schedule a time to talk and get all of your questions answered by CLICKING HERE
