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Whether you’re just signing up for Medicare, considering switching plans or helping a loved one navigate Medicare health insurance, comparing supplement plans is an important part of the process. Medicare supplement plans F, G and N are three popular options.
In addition to your basic Medicare coverage, it’s common to sign up for a Medicare supplement plan or Medicare Advantage, which helps to cover costs not included in Medicare Parts A and B.
Medicare supplement plans, also referred to as Medigap plans, help to fill in coverage gaps for the federal government’s health insurance for those age 65 and over. The various Medicare supplement plans consist of Plans A, B, C, D, F, G, K, L, M and N.
Plans F, G and N, which are the three of the most popular supplement plans, are offered by private insurance companies, such as United HealthCare and Humana.
[Read: Medicare vs. Medicare Advantage: How to Choose.]
Who Qualifies for Plan F, Plan G or Plan N?
Importantly, Plan F is only available for those who turned 65 or qualified for Medicare before January 1, 2020. In 2015, Congress passed the Medicare Access and CHIP Reauthorization Act, also called MACRA, that blocked access to Plan F for those people who became eligible after January 1, 2020.
You can still sign up for Plan F if you qualified for Medicare before January 1, 2020.
Although many people sign up for Medicare when they’re first eligible at or around age 65, others may wait. For instance, if you were working at a place that offered health insurance benefits when you turned 65, you may have opted out of Medicare to stay on that insurance coverage. Once you retire, you may want to start taking advantage of your Medicare benefits.
[Understanding Medicare Eligibility for Individuals Under 65 With Disabilities]
What Is Medicare Plan F?
You may also hear Medicare Plan F referred to as Medicare supplement Plan F and Medigap Plan F. No matter which name is used, Medicare Plan F helps to cover health expenses that aren’t included in Medicare Parts A and B — in other words, the coverage gaps.
Plan F coverage includes:
— Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
— Part A deductible
— Part B deductible
— Part B coinsurance or copayment
— Part B excess charge, which is a charge by your provider beyond the Medicare-approved amount
— Blood (first three pints)
— Skilled nursing facility care coinsurance, as well as hospice care coinsurance or copayment
— 80% of the cost of health care costs incurred while traveling in a foreign country, up to your plan’s limits
What Is Medicare Plan G?
Medicare Plan G coverage is similar to Medicare Plan F coverage, but it does not include the part B deductible. Medicare Plan G coverage includes:
— Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
— Part A deductible
— Part B coinsurance or copayment
— Part B excess charge, which is a charge by your provider beyond the Medicare-approved amount
— Blood (first three pints)
— Skilled nursing facility care coinsurance, as well as hospice care coinsurance or copayment
— 80% of the cost of health care costs incurred while traveling in a foreign country, up to your plan’s limits
What Is Medicare Plan N?
Medicare Plan N is similar to Plan G, but it has some copayments for Part B services that Plan G doesn’t have, says Whitney Stidom, vice president of Medicare operations for eHealth, a health insurance broker and online resource provider headquartered in Santa Clara, California. That means you may have to pay a certain amount for some doctor’s office visits. Like Plan G, Plan N doesn’t cover the Part B deductible.
Medicare Plan N coverage includes:
— Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
— Part A deductible
— Part B coinsurance or copayment, although there are copayments of up to $20 for some office visits and up to a $50 copayment for some emergency room visits
— Blood (first three pints)
— Skilled nursing facility care coinsurance, as well as hospice care coinsurance or copayment
— 80% of the cost of health care costs incurred while traveling in a foreign country, up until your plan’s limits
Both Plan G and Plan N are available to all Medicare beneficiaries, unlike Plan F, Stidom says.
Medicare Plan F vs. Plan G vs. Plan N Coverage
Here is more information to help you compare Medicare Plan F versus Medicare Plans G and N.
Medicare Plan F vs. Plan G vs. Plan N: Costs
Most people signing up for Medicare won’t have the option to choose between supplement Plans F versus G or N because of the cutoff that took effect on January 1, 2020. No matter what your plan choices are, you’d be wise to consider your total annual out-of-pocket costs for deductibles, copays and premiums. Compare those side by side for any plan you’re considering. There are online tools on websites, such as eHealth, to help give you a side-by-side comparison.
To compare costs, make sure you’re looking at the deductible and the monthly premium. For instance, if you qualify for both Plans F and G, Plan F may seem advantageous at first because you don’t have to pay the $240 deductible for Part B. However, a typical monthly premium with Plan F is $234 a month for a 65-year-old female who does not use tobacco, says Jennifer Byrd, an insurance broker specializing in Medicare who’s based in Lakewood Ranch, Florida. Although premiums will vary by your location and other factors, a premium for that same person would be roughly $192 under Plan G.
“I would be OK with paying the Part B medical deductible because I would think about how much I was spending per month for premiums,” Byrd explains.
The annual premium cost in this scenario is $2,808 for Plan F versus $2,318 for Plan G, equaling a savings of $490. The savings are still there after paying the Part B deductible. To find out which plan is the most financially beneficial, it’s important to crunch the numbers either on your own or with a knowledgeable insurance agent. By comparing plans in your area, you can find out which plan is more affordable. When working with the same type of plan, the coverage will be identical no matter which company you choose.
Make sure to choose a premium you can pay in the long run if you’ll be on a fixed income, says Bob Rees, chief sales officer with eHealth.
Medicare Plan F vs. G vs. N: Deductibles
The other major difference to consider when comparing Plans F, G and N is that Plan F covers the annual Part B deductible of $240, but Plans G and N don’t. That deductible amount can change from year to year, including a change from $226 in 2023 to $240 in 2024.
“For a long time, Plan F was considered the gold standard, providing the most comprehensive coverage,” Rees says. “Plan F is being phased out for new beneficiaries. Plan G is the closest thing to Plan F that’s currently available to new beneficiaries.”
Yet Plan N is popular as well because it has relatively robust coverage and typically has a lower premium than Plans F and G.
Medicare Plan F vs. Plan G vs. Plan N: Which Is Better?
The best way to determine if Plan F, Plan G or Plan N is better for you is to crunch the numbers and work with knowledgeable, unbiased insurance professionals who can help you better understand the plans and how they may apply to you. Keep in mind that Plan F is only available to you if you turned 65 before January 1, 2020.
[Read: Your Guide to Medicare Coverage.]
How to Select a Medicare Supplement Plan
Here are other strategies to evaluate which Medicare supplement plan is right for you:
— Work with a licensed insurance broker or agent who sells plans from various companies, a counselor from the State Health Insurance Assistance Program or other independent Medicare consultants. Medicare supplement options can get overwhelming, but licensed insurance brokers or agents — who are subject to government oversight — can provide information for free. To use SHIP, which is a free program that can help you navigate supplement plans, visit Shiphelp.org or find a local counselor by calling 1-877-839-2675.
— Do your research on trusted websites like Medicare.gov or the Centers for Medicare and Medicaid Services’ CMS.gov. These sites provide unbiased information and are packed with resources. Your local senior center also may have resources available. Medicare also sends an annual handbook, titled “Medicare & You,” in the mail to its users that may come in handy as you try and understand your options.
— Don’t expect a difference in coverage within the same type of plan. If you’re comparing one type of supplement plan — say, Plan G — from different companies, don’t expect much variation in their actual coverage. You may, however, find cost differences that make one better over another for your needs. In addition, some companies may offer extra perks, such as gym memberships.
— Ask how pricing is determined for the supplement plans you might choose as they could affect cost increases to your plan in the future. You may also hear these referred to as ratings, but they’re not ratings in the traditional sense. Plans are divided into community-rated, issue-age or attained-age. Community-rated plans have the same premium for everyone regardless of age, while issue-age plans are priced based only on the age you are when you buy the plan and don’t increase otherwise. Finally, attained-age plans are priced based on your current age but will increase as you get older.
— Consider an insurance company’s reputation or your personal experience with it. This may influence your choice of one company over another when choosing a Medicare supplement plan. Given Medicare guaranteed issue rights, you may not have the option to switch companies or plans in the future, so you’ll need to be thoughtful with this decision.
— Budget extra costs for a prescription drug plan. Medicare’s Part D is its prescription drug plan and isn’t included with supplement plans, though it is included with Medicare Advantage plans. When choosing a supplement plan, do your homework on potential costs associated with Part D coverage to factor that into your budget.
— Ask about high-deductible plans. Some states have high-deductible versions of Supplement Plans F and G. This means you pay more in advance toward health expenses before coverage takes effect, but your monthly premiums are lower. In 2024, the deductible for high-deductible Plans F and G is $2,800. Rees advises that you should enroll in one of these only if you know you can afford the deductible when medical needs arise.
How to Sign Up for a Medicare Supplement Plan
It’s easy to apply for a Medicare Supplement plan. Here’s how:
— Find out which Medicare supplement plans are available in your state. Not all plans are available in all areas. You can typically search online on Medicare supplement websites and by inputting your zip code. Or, work with a trusted professional who can guide you.
— Once you find a plan that suits your needs, fill out the application.
— If or when you’re approved, review the policy to make sure you are comfortable with it.
It’s important to be mindful when you’re signing up for a Medicare supplement plan. The best time to sign up for a supplement plan is the six-month window of time once you’ve turned 65 and you’re enrolled in Medicare’s Part B. That timeframe is important because insurers can’t deny you coverage due to existing health problems. You can sign up for a Medicare supplement plan after that six-month window of time, but prices may be higher or your application may get denied.
It’s always best to check your state’s individual rules regarding Medicare Supplement enrollment as rules can vary.
Bottom Line
Understanding the differences among Medicare supplement plans, including Plans F, G and N, can get tricky. However, a careful review of what different plans offer can help you find one that meets your health needs.
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originally appeared on usnews.com
Update 07/30/24: The story was previously published at an earlier date and has been updated with new information.
