In Medicare, the term excess charges refers to any charges your doctor bills you over and above the standard Medicare reimbursement rate under Medicare Part B. So if Medicaid Part B reimburses your doctor $509.19 to put in a pacemaker, but your doctor charges $750 for the procedure, then the difference of $241.81 would be considered excess charges.
Excess charges are unusual: Most doctors who accept Medicare patients will accept the standard reimbursement rates for the services they perform. But a few doctors will charge more than the standard rate. They will send you a bill for the difference.
Medicare supplement Plan G will cover these excess charges. Medicare Plan N will not. Both are very comprehensive plans. The treatment of excess charges is one of just a few small differences between Plan G and Plan N.
Medicare Plan N is also generally available at a slightly lower monthly premium than Plan G.
Plan G is more popular. But in states that don’t allow doctors to charge excess charges (CT, MA, MN, NY, OH, PA, RI, and VT), Plan N may represent the better value.