Plan N vs Plan G – Which Saves you the Most Money?

Plan N vs Plan G  – Which Saves you the Most Money?

Have you been comparing
benefits between Medigap plans and wondering if you can
save money with plan N? If you have, you’re not alone. It’s one of the plans that we
get the most inquiries about. Hi, there. If we haven’t met yet, I’m
Danielle Kunkel Roberts, co-founder here at
Boomer Benefits, and a member of the
Forbes Finance Council. 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 personally, 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. Stay tuned so that
you can find out how to get our Medigap Plan
G Versus Plan N Comparison guide, which will
give you at a glance helpful information about
both plans to help you decide. And if you find
this video helpful, don’t forget to hit the
Subscribe button so that you’ll always be notified when we
drop a new video on the Boomer Benefits YouTube channel. Many of these videos give
you important updates on upcoming Medicare election
periods, which you certainly won’t want to miss. [MUSIC PLAYING] First, let’s talk numbers. The rates for Medigap
plans vary widely across the United States. Plans in New York and
Florida, for example, could be nearly double the rates
in some of the least expensive Medigap states. Rates vary based on the
costs of health care 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 to $30 a 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
difference of around $50 to $60 a 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 as
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 for your own
access charges too. An access 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. It’s important to also
mention that there are a few states where access
charges are prohibited by law. So in those states, the only
difference between plan G and N are the co-pays that you pay for
medical and emergency visits. We cover these in
the free guide that would be giving away at
the end of the video, so stay tuned for that. 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 would save me $15 to $30 a 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’s 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
two or more doctor visits per month, let’s say I have
a chronic health condition, then plan G will
absolutely save me money, because otherwise
I would rack up too many co-pays on 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 would do if I were in your shoes. I’ll also share with
you some feedback that we have from
our own policyholders here at Boomer Benefits. Some for our clients who
choose plan N at first call us back later
and want to change to plan G because all of the
co-pays and the little balance bills begin to annoy them. They decide that
they would rather pay slightly more
to just eliminate that hassle altogether. Now, remember, you can
avoid the access charges by simply asking your
providers upfront if they accept
Medicare assignment, and then just refuse to
treat with any doctor that doesn’t accept
Medicare’s allowed rates. But the reality is that
people often 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’re considering
all the factors, your total monthly premium
savings, your medical usage, and whether or not
you’ll be diligent enough to always ask about
assignment, these are the things that can
lead you to deciding which plan is right for you. We also hear a lot of people
speculating that plan and rate increases might be lower
than Plan G rate increases after 2020 because people
coming off large employer plans will be able to get Plan G
with no health underwriting under guaranteed issue rules. Plan N, on the
other hand, doesn’t qualify for
guaranteed issue when coming off of their coverage. That means that it will
require medical underwriting to get approved for plan
N unless you have just activated Part B in
your one-time Medigap open enrollment window. So the theory is that there may
be a healthier group of people on plan N which could maybe
make for lower rate increases on that plan in the future. I can neither
confirm nor deny this because it remains to be seen. We hear speculation like this on
a zillion things with Medicare, and I’ve learned never
to believe it until we see proof of it happening. My advice until then is
to make your decision based on what we know for a
fact right now and not what might maybe happen someday. Do you have a question about
how plan N coverage works? Feel free to drop it in the
comments below this video and we will of course
answer for you. And don’t forget to download our
free Medigap Plan G Versus Plan N Comparison guide. You can find the link for
that in the description below the video. Look for the Boomer Benefits
logo below this video and click the Show More
link to see the notes. You’ll find the link
for the guide in there. Thanks for watching and we’ll
see you in a future video. [MUSIC PLAYING]

7 thoughts on “Plan N vs Plan G – Which Saves you the Most Money?

  1. Have a question about Plan N? Post it here and we'll answer. You can also get the Plan G vs Plan Comparison Guide here:

  2. I know plan F is going away, but what if you would have qualified for F this year but are waiting a couple years to retire, will plan F be available then because you did qualify for it prior to it going away?

  3. Hi I'm out here in kalifornia the liberal state and am on state retirement with a medical benefits from that (Kaiser Permanente ) as my primary medical with dental & Optical coverage. I have had my medicare A since 2009 because I'm also on SSDI should I worry about being switched among all these other plans ? Or just leave it alone?

  4. Plan G was in the same “protected class” (requiring underwriting) if not enrolled during Medigap Open Enrollment – assumption being it is a healthier pool resulting in lower premium increases. That honor will belong to N in 2020. What bothers me about N is the excess charges. I don't have a crystal ball but I fear as more docs are squeezed by Medicare approved rates, more will opt out of accepting assignment to keep seeing Medicare patients.
    I always think we have to insure our 85 year old self when we pick our coverage at a healthy age 65. What questions do you ask clients about longevity and family health history to make sure they are not just finding the best value at 65 but a poor choice for 85?

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