If your Medigap Plan G premium has increased over the past few years, you're probably wondering whether paying for standard Plan G still makes financial sense.
High Deductible Plan G provides the same standardized Medigap benefits as Plan G once the annual deductible is met, but generally at a much lower monthly premium.
The question isn't whether the coverage is different.
The real question is whether this payment structure fits your situation better.
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Why This Matters More Now
For years, I didn't spend much time discussing High Deductible Plan G with clients.
Standard Plan G premiums were often just a little over $100 a month, and the gap between Plan G and HDG usually wasn't large enough to make the trade-off compelling.
That's changed.
With the rate increases across Medigap plans in 2025 and 2026, the math looks different than it used to, and it's worth taking a fresh look at HDG.
The comparison that actually matters is your monthly premium plus the HDG deductible, added together, against what you'd pay in Plan G premiums alone over the year — not just the premium difference on its own.
Plan G
Higher premium
↓
Little out-of-pocket
↓
Predictable every month
High Deductible Plan G
Lower premium
↓
More upfront if care is needed
↓
Same coverage after deductible
Same Coverage
The benefits are identical once the deductible is met
Same Medicare provider access and the same standardized Medigap benefits after the deductible is met.
Lower Monthly Premium
HDG can be substantially less expensive each month
You take on a $2,950 annual deductible (2026) in exchange for that lower premium — and Medicare still pays its share first.
Feature
Plan G
High Deductible Plan G
Monthly premium
Higher
Lower
Out-of-pocket before full benefits
$283 Part B deductible (2026)
$2,950 HDG deductible (2026), including qualifying Medicare deductibles and cost-sharing
Standardized benefits
Full Medigap Plan G benefits
Identical once the HDG deductible is met
Doctor choice
Any Medicare provider
Any Medicare provider
Networks / referrals
None
None
Best for
Predictable monthly costs
Lower fixed costs, comfortable with some yearly variability
High Deductible Plan G isn't a different Medicare Supplement plan — it's a different way to pay for the same standardized Plan G benefits.
Instead of a higher monthly premium that starts covering costs almost immediately, you pay an annual deductible first — $2,950 in 2026.
Once you hit that deductible, the plan works exactly like standard Plan G for the rest of the year, covering the Medicare-approved gaps at 100%.
Like standard Plan G, High Deductible Plan G includes coverage for Medicare Part B excess charges once the annual HDG deductible has been met.
Foreign travel emergency benefits are also identical to standard Plan G — 80% of eligible emergency costs abroad after a separate $250 travel deductible, which is distinct from the main $2,950 HDG deductible.
Important
By law, the covered Medigap benefits under High Deductible Plan G are identical to standard Plan G once your deductible is met. The only differences are a lower monthly premium and a deductible you pay first.
How a Claim Flows Under HDG
1Original Medicare
Pays First
2Remaining Medicare Cost-Sharing
Counts Toward HDG Deductible
3HDG Pays Like Plan G
How the Deductible Actually Works
This is where most explanations fall short, and it's the single biggest misconception I run into.
People hear "$2,950 deductible" and assume they're paying every medical bill in full until they hit that number.
That's not how it works.
Original Medicare pays first, exactly like it does with any other Medicare Supplement plan — that never changes.
Medicare pays its share (typically about 80% for Part B services), and only the leftover portion applies toward your HDG deductible.
Simple example: a $1,000 procedure, assuming the annual Part B deductible has already been met. Medicare pays 80% ($800). The remaining $200 is what applies toward your deductible — not the full $1,000 bill.
Hospital Costs: Plan G vs. HDG
Say you have a hospital stay with $30,000 in total billed charges.
Medicare's approved amount, which is what everything is actually based on, comes to $18,000.
The billed and Medicare-approved amounts are illustrative — for this comparison, the main beneficiary cost is the applicable Part A deductible and any other Medicare cost-sharing.
The 2026 Part A deductible is $1,736.
Plan
How It Works
Your Cost
Standard Plan G
Covers the full Part A deductible and hospital coinsurance after Medicare pays
$0
High Deductible Plan G
You pay the Part A deductible first; it counts toward your $2,950 annual HDG deductible
$1,736
For Medicare-covered services, the qualifying deductibles and cost-sharing you pay accumulate toward the fixed annual HDG deductible.
Doctor Visits & Outpatient Care
Most of your day-to-day care falls under Part B — office visits, specialists, imaging, lab work.
After the annual Part B deductible ($283 in 2026) is met, Medicare generally pays 80% of the Medicare-approved amount for covered Part B services.
You ordinarily pay the remaining 20% until your total qualifying out-of-pocket costs reach the HDG deductible.
Example
Medicare-Approved Amount
You Owe (HDG)
Office visit
$120
$24 (20%)
MRI / outpatient testing
$1,200
$240 (20%)
With Plan G, both of these would be $0 once the small Part B deductible is met. With HDG, the 20% applies toward your annual deductible instead.
These simplified examples assume the annual Part B deductible has already been met.
For someone with limited healthcare use, the deductible may accumulate gradually through office visits, testing, and other Medicare cost-sharing.
A hospitalization or ongoing outpatient treatment can cause costs to accumulate much faster.
The Break-Even Math
Here's a simple way to think about the trade-off.
In past years, the gap between the two premiums was often smaller, so this math mattered less.
As Plan G rate increases have widened that gap, the potential savings from HDG have grown along with it.
Plan G
$220/mo
HDG
$70/mo
In this example, Plan G runs $2,640/year, and HDG runs $840/year — a savings of $1,800/year.
For a single year, your premium savings create a financial buffer.
If your additional HDG cost-sharing remains below that year's premium savings, HDG costs less for that year.
Over several years, compare total premiums and total medical cost-sharing rather than assuming the same savings will continue unchanged.
Both premiums can change over time, and the two versions of Plan G may not receive identical percentage increases.
You do not necessarily need to avoid the deductible for HDG to come out ahead.
What matters is whether your cumulative premium savings exceed your additional cost-sharing over the period you are comparing.
Scenario
5-Year Plan G Total
5-Year HDG Total
Premiums only, before medical cost-sharing
$13,200
$4,200
Maximum HDG cost-sharing reached twice
$13,200
$10,100
Figures are illustrative, based on a $220/mo Plan G premium and a $70/mo HDG premium ($2,640 and $840 per year). The HDG total in the second row adds two years of the full $2,950 deductible ($4,200 + $5,900 = $10,100). These examples exclude the annual Part B deductible under standard Plan G and any HDG cost-sharing incurred during years when the full deductible is not reached.
What I Typically See by State
Pricing varies quite a bit by ZIP code, age, gender, and carrier — there's no single "Florida price" or "Texas price" for either plan.
The examples below reflect the types of premiums I commonly encounter for 65-year-old nonsmokers in selected ZIP codes.
They are not statewide averages, and premiums can differ substantially for other ages and locations.
State
Typical Plan G
Typical HDG
Monthly Difference
Florida
$180–$260
$60–$85
~$150–$175
Texas
$150–$190
$50–$65
~$110–$125
Georgia
$170–$210
$55–$65
~$130–$145
These are illustrative ranges based on the applicant profiles and ZIP codes I quote regularly — not official statewide averages. Confirm current premiums using your own ZIP code and applicant details before deciding.
In many of the markets and applicant profiles I regularly quote, the difference can exceed $100 per month.
Actual savings depend on age, ZIP code, gender, tobacco status, carrier, and available discounts.
From the Field
The number I hear most often from clients isn't "what's the deductible" — it's "so I'm paying everything until I hit $2,950, right?" Once I walk through the Medicare-pays-first math, most people relax quite a bit about the number itself.
Setting Aside the Deductible
If you're saving money every month on the lower premium, it's worth redirecting some of it rather than spending it.
For example, setting aside $100/month builds a $1,200 cushion in a single year.
Over a few years, that reserve can grow to $6,000 or more.
Even if you never use it for healthcare, it's still your money — unlike a Plan G premium, which is gone whether you use the plan or not.
Who It's a Good Fit For
HDG Is Often a Strong Fit If...
You're relatively healthy and don't go to the doctor often
You primarily want protection from large, unexpected Medicare costs
Lowering your fixed monthly cost matters more than year-to-year predictability
You're frustrated with rising Plan G premiums but don't want less coverage
HDG May NOT Be Right If...
You're receiving chemotherapy, dialysis, or frequent outpatient treatment
You strongly prefer a fixed, fully predictable monthly cost
You're not comfortable with any upfront cost exposure
The premium gap in your ZIP code is small enough that it isn't worth the trade-off
Whether you can switch from one Medigap policy to another without medical underwriting depends on your state and whether you qualify for guaranteed issue rights.
Medicare.gov — Medigap Costs — general reference for how Original Medicare pays first and how Medigap cost-sharing works.
Bottom Line
Pricing varies by ZIP code, age, gender, and carrier, so there isn't a one-size-fits-all answer here.
What usually helps most is seeing your own numbers side by side: what Plan G costs you today, how HDG compares, and how your expected healthcare usage affects which option is more efficient over time.
In my experience, the best Medicare decision usually isn't the one with the lowest premium or the lowest deductible.
It's the one whose cost structure best matches how you actually use healthcare.
We can compare real Plan G and High Deductible Plan G quotes available in your ZIP code and estimate how each option could affect your costs over time based on your expected healthcare usage.
FAQ
Do I pay 100% of my medical bills until I hit the HDG deductible?
No. Original Medicare still pays first. For most covered Part B services, after the annual Part B deductible is met, Medicare generally pays 80% of the Medicare-approved amount. You pay the remaining Medicare cost-sharing, which accumulates toward the HDG deductible.
Is High Deductible Plan G lower-quality coverage than standard Plan G?
No. The covered Medigap benefits are standardized and match Plan G once the HDG deductible is met. The difference is when the supplement begins paying, not the doctors you can see or the benefits available after the deductible.
What is the HDG deductible in 2026?
The High Deductible Plan G deductible is $2,950 in 2026. Qualifying Medicare deductibles, copayments, and coinsurance accumulate toward that amount.
Can I switch from Plan G to HDG, or the reverse, later?
Possibly, but approval isn't guaranteed. Outside your Medigap Open Enrollment Period or a guaranteed-issue situation, an insurer may require medical underwriting. State-specific protections can also affect your ability to change plans.
How is High Deductible Plan G different from a Medicare Advantage plan?
HDG works alongside Original Medicare and generally allows you to use any provider nationwide who accepts Medicare. Medicare Advantage replaces how you receive your Medicare benefits and may use provider networks, prior authorization, referrals, copayments, and an annual out-of-pocket maximum.
For over 15 years, Matt Kiggins has been the senior editor at Simple Advisor, giving detailed advice on Medicare, life insurance, and dental coverage to thousands of clients in more than forty states. His demonstrated expertise in assisting people with their health plan selection is remarkable — it’s evident that he stands out among competitors as the go-to source for knowledge and support.
Matt holds a resident 2–15 Florida Health & Life (Including Annuities & Variable Contracts) Agent License in Florida, his state license number is P116762 (Issued 10/1/2007).
