Medigap Plan G vs. High Deductible Plan G: Costs & Coverage

The better choice depends on the premium gap in your ZIP code, how much healthcare you use, and how comfortable you are paying some medical costs during the year.

In my experience helping people compare these two plans, the biggest surprise is how much High Deductible Plan G can save in premiums — even in years when someone needs medical care.

Plan G vs. High Deductible Plan G: Comparison Chart

The biggest difference isn't the medical coverage.

It's when you pay for it.

Standard Plan G collects more through monthly premiums, while High Deductible Plan G shifts more of the potential cost to the time you actually receive care.

What Is the Difference Between Plan G and High Deductible Plan G?

High Deductible Plan G isn't a different Medicare Supplement plan — it's a different way to pay for the same Plan G benefits.

Medigap plans are standardized by federal law, so every Plan G covers the same benefits no matter which company sells it, as Medicare.gov explains.

That standardization carries over to the high deductible version: once the deductible is met, it pays exactly like standard Plan G for the rest of the calendar year.

That includes Part B excess charges.

The foreign travel emergency benefit is also the same, but it works on its own terms: a separate $250 deductible, 80% coverage, and a $50,000 lifetime limit, apart from the HDG deductible.

If you want to see how Plan G's benefits line up against every other plan letter, our Medicare Supplement plans comparison chart shows them side by side.

How Does the High Deductible Plan G Deductible Work?

This is where most explanations fall short, and it's the single biggest misconception I run into.

People hear "$3,050 deductible" and assume they'll pay every medical bill in full until they reach that number.

That's not how it works.

Original Medicare still pays first, exactly as it does with any other Medicare Supplement plan.

Only the leftover Medicare cost-sharing — deductibles and coinsurance — counts toward your HDG deductible.

CMS set the 2027 deductible at $3,050, up $100 from $2,950 in 2026, and it adjusts the amount for inflation each year.

The Part B deductible you pay counts toward the $3,050, since Plan G doesn't cover the Part B deductible in either version.

For a deeper look at the trade-offs of the high deductible version on its own, see our guide to the pros and cons of High Deductible Plan G.

Plan G vs. High Deductible Plan G: Cost Comparison

For years, I didn't spend much time discussing High Deductible Plan G with clients.

Standard Plan G premiums were often a little over $100 a month, so the gap between the two versions usually wasn't large enough to make the trade-off compelling.

Rate increases across Medigap plans in 2025 and 2026 changed that math.

Here's an example using premiums I commonly see today.

That's $1,800 a year in premium savings — the question is how much of it you'd give back in medical costs.

One Year, Four Scenarios

Illustrative, using constant $220 and $70 monthly premiums. "Extra cost-sharing" means Medicare cost-sharing an HDG member pays that standard Plan G would have covered. The Part B deductible is excluded because members of both plans pay it. The full-deductible row uses $3,050 minus the 2026 Part B deductible of $283; CMS announces the 2027 Part B deductible in November.

Over Five Years

Over several years, HDG can still come out ahead even with a couple of heavy years.

Same assumptions as the one-year table, with premiums held flat. Real premiums change, and the two versions may not receive identical increases.

Most people I work with land somewhere in the first three rows; the last row is the real risk case for ongoing, high-cost treatment, covered below.

Hospital Costs Under Both Plans

Inpatient hospital care works differently from the 80/20 split for doctor visits.

Medicare Part A is built around benefit periods, a deductible for each one, and daily coinsurance for longer stays.

Under standard Plan G, the policy covers the Medicare Part A hospital deductible.

Under High Deductible Plan G, you generally pay that deductible yourself until you've satisfied the HDG deductible, and the amount you pay counts toward it.

For reference, the Part A deductible was $1,736 per benefit period in 2026, according to the CMS 2026 fact sheet.

Uses the 2026 Part A deductible; CMS announces the 2027 amount in November.

A single hospital stay gets you more than halfway to the HDG deductible.

Any further qualifying cost-sharing that year fills in the rest, and then the plan pays like standard Plan G.

Doctor Visits and Outpatient Costs

Most day-to-day care falls under Medicare Part B — office visits, specialists, imaging, and lab work.

After the annual Part B deductible ($283 in 2026), Medicare pays 80% of the approved amount for covered services.

With HDG, you pay the remaining 20% until your qualifying costs reach the deductible.

Assumes the annual Part B deductible has already been met.

For someone with limited healthcare use, the deductible fills slowly through occasional visits and tests.

A hospitalization or ongoing outpatient treatment fills it much faster.

Real-World Premium Differences by State

Pricing varies by ZIP code, age, gender, tobacco use, and carrier — there's no single "Florida price" or "Texas price" for either plan.

For a deeper look at standard Plan G pricing by age, see our 2027 Plan G cost guide.

These are examples from quotes we've reviewed for 65-year-old nonsmokers in selected ZIP codes.

Examples from quotes we've reviewed, not a defined sample or official statewide averages. Confirm current premiums with your own ZIP code and details before deciding.

Put these next to the illustrative maximum above and the picture gets clearer.

At the top of the Florida and Georgia ranges, a $230 monthly gap adds up to about $2,760 a year — nearly enough to cover a full-deductible year on its own.

In the Texas profiles I quote, the gap is usually smaller, so a heavy-use year is more likely to favor standard Plan G.

When High Deductible Plan G Makes More Financial Sense

• You're relatively healthy and don't see doctors often.
• Your main goal is protection from large, unexpected Medicare costs.
• The premium gap in your ZIP code is large — especially if it approaches the HDG deductible minus the Part B deductible.
• Lowering your fixed monthly cost matters more to you than year-to-year predictability.
• You're frustrated with rising Plan G premiums but don't want to give up Plan G's benefits.

Setting Aside the Deductible

If you choose HDG, it's worth redirecting part of the premium savings instead of spending it.

Setting aside $100 a month builds a $1,200 cushion in a year.

Over a few years, that reserve can grow to more than the full deductible.

And if you never need it, it's still your money — unlike a premium, which is gone whether you use the plan or not.

When Standard Plan G Is the Better Choice

• You strongly prefer a fixed, predictable healthcare budget.
• You aren't comfortable paying up to $3,050 in a bad year, even if it's unlikely.
• The premium gap in your ZIP code is small enough that the trade-off isn't worth it.
• You expect high, ongoing medical costs and your annual premium gap is well below the maximum extra cost-sharing HDG can add.

That last point deserves a closer look.

Ongoing treatment like chemotherapy or dialysis makes it very likely you'll hit the full HDG deductible every year.

That doesn't automatically make standard Plan G cheaper.

It means the comparison comes down to whether your annual premium savings exceed that maximum extra cost-sharing.

Where the gap is smaller, standard Plan G usually wins for high users; where it's larger, HDG can still come out ahead.

If neither version fits, Medicare Supplement Plan N is another lower-premium option, with small copays instead of a large deductible.

Can You Switch Between Plan G and HDG?

Sometimes, but it's not guaranteed.

Outside your Medigap Open Enrollment Period or a guaranteed issue situation, most insurance companies can ask health questions and decline your application, as Medicare.gov notes.

Moving from HDG back to standard Plan G later usually means passing that underwriting.

So if your health changes, you may not be able to switch back.

A few states have their own rules that make changing plans easier at certain times, and not every carrier offers HDG in every area.

That's why it pays to make this choice carefully the first time.

Final Recommendation

There's no one-size-fits-all answer here.

Two Questions to Decide