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Medicare Supplement Plan G vs High-Deductible Plan G: Which Costs Less?

Standard Plan G and High-Deductible Plan G provide essentially the same standardized Plan G benefits—but they make you pay for those benefits very differently.

Standard Plan G generally means a higher monthly premium and more predictable medical costs. High-Deductible G generally means a lower premium but more qualifying Medicare cost sharing before the policy begins paying.

STANDARD PLAN G

Higher premium • Greater predictability

HIGH-DEDUCTIBLE G

Lower premium • More self-funded cost sharing

2026 HDG DEDUCTIBLE

$2,950 annual threshold

MOST IMPORTANT NUMBER

Your annual premium difference

Same Benefits. Different Risk Structure.

The decision is about annual premium savings versus the additional medical expenses you could pay under High-Deductible G.

FeatureStandard Plan GHigh-Deductible Plan G
Monthly premiumGenerally higherGenerally lower
Separate Plan G deductibleNone$2,950 in 2026
Part B deductibleYou pay itGenerally counts toward HDG threshold
Part A hospital deductiblePlan G paysYou may pay until HDG threshold
Part B coinsurancePlan G pays after Part B deductibleYou may pay until HDG threshold
Part B excess chargesCoveredCovered after HDG threshold
Provider networkOriginal MedicareOriginal Medicare
Best known forPredictabilityLower premiums / more cost sharing

A $2,950 Deductible Does Not Mean Medicare Pays Nothing

You still have Original Medicare. Medicare Part A and Part B continue paying their share of Medicare-covered services.

Before the HDG Deductible

Provider → Medicare processes claim → Medicare pays its portion → you pay qualifying Medicare cost sharing.

After the HDG Deductible

Provider → Medicare processes claim → Medicare pays its portion → HDG pays the applicable standardized Plan G benefit.

Better way to think about HDG

You are self-funding the first layer of your Medigap protection in exchange for a lower insurance premium.

The High-Deductible Plan G Deductible Is $2,950

The deductible increased from $2,870 in 2025 to $2,950 in 2026. The standard Part B deductible is $283 in 2026.

$2,950

2026 HDG threshold

$283

2026 Part B deductible

$1,736

2026 Part A inpatient deductible

You generally do NOT add $283 to $2,950.

The Part B deductible generally counts toward the HDG threshold. Think of $2,950 as the qualifying-expense threshold—not automatically $3,233.

What Can Count

Part A hospital deductible / coinsurance
Part B deductible in most circumstances
Part B coinsurance
Skilled nursing coinsurance
Certain hospice cost sharing
Eligible Part B excess charges

What Does Not Count

Your HDG premium
Routine dental
Routine vision / eyeglasses
Hearing aids
Long-term custodial care
Most outpatient prescriptions

The Premium Spread Is the Heart of the Comparison

Client example: Standard Plan G = $180/month and High-Deductible G = $65/month.

Monthly Difference

$180 − $65 = $115/month

Annual Premium Savings

$115 × 12 = $1,380/year

Better Break-Even

Standard G annual premium + $283 Part B deductible versus HDG annual premium + actual qualifying costs.

Using the example

Standard G: $2,160 premium + $283 = $2,443. HDG premium: $780. HDG remains less expensive until qualifying medical expenses approach roughly $1,663.

2026 maximum-exposure benchmark

$2,950 − $283 = $2,667. Spread over 12 months, that is about $222.25/month. This is why actual premium spread matters so much.

Low Use, Moderate Use & High Use

Low-Use Year

HDG premium: $780
Qualifying expenses: $500

$1,280

HDG can produce substantial savings.

Moderate-Use Year

HDG premium: $780
Qualifying expenses: $1,500

$2,280

Still below the example Standard G total of $2,443, but the advantage is much smaller.

Full HDG Deductible

HDG premium: $780
Qualifying expenses: $2,950

$3,730
In this example, Standard G is about $1,287 less expensive.

Central tradeoff

HDG can win substantially in a low-use year. Standard G can win substantially in a high-use year.

What Happens if You're Hospitalized?

The 2026 Medicare Part A inpatient hospital deductible is $1,736. Standard Plan G includes coverage of that deductible. With HDG, if you have not yet reached the high deductible, you may have to pay the applicable Part A deductible yourself, and qualifying amounts generally count toward the HDG threshold.

One Medicare-covered inpatient admission can move someone more than halfway toward the $2,950 HDG threshold. Doctor visits are not the only risk.

Predictability vs Lower Fixed Premium

Standard Plan G May Fit Better If

The premium difference is relatively small
You use healthcare frequently
You expect specialists or procedures
Surprise medical expenses would create stress
You prefer a higher fixed monthly premium

High-Deductible G May Fit Better If

The premium savings are substantial
You have sufficient cash reserves
You can comfortably self-fund several thousand dollars
You use relatively little healthcare
You accept variable medical expenses

Healthy Does Not Automatically Mean HDG

A healthy beneficiary saving only $40 per month is accepting much more potential cost-sharing to save $480 per year. Another person saving $190 per month, or $2,280 per year, is facing a very different financial proposition. Premium spread matters as much as health status.

Do Not Ignore Cash Flow

Annual math is not the whole story. If a hospitalization happened in January, could you comfortably pay a $1,500 or $2,950 Medicare cost-sharing obligation before a year of premium savings has accumulated?

The question before choosing HDG

Can I comfortably afford the monthly premium AND the possibility of paying the entire HDG deductible?

If paying $2,950 of qualifying Medicare expenses would be financially stressful, the lower monthly premium may be misleading.

Do Not Choose HDG Assuming You Can Always Switch Later

“If my health gets worse, I'll simply switch to standard Plan G.”

That may not be guaranteed. Medigap does not have an annual nationwide guaranteed switching period comparable to Medicare Advantage’s Annual Enrollment Period.

Your federal Medigap Open Enrollment Period generally lasts six months beginning when you are 65 or older and enrolled in Medicare Part B. Outside protected rights, a carrier may be permitted to use medical underwriting depending on your state and circumstances.

Annual Deductible Reset

The HDG deductible resets each calendar year. The federal amount can also change annually, so long-term planning involves both premium risk and deductible risk.

Provider Access & Travel

Both standard Plan G and HDG work alongside Original Medicare and can generally be used with Medicare-accepting providers nationwide. Medicare SELECT versions can differ.

Prescription Drugs

Neither modern Plan G nor HDG includes outpatient Part D prescription coverage. A separate Medicare Part D plan may need to be evaluated.

Does the insurance company matter?

Yes. Medigap benefits are standardized by plan letter, but carriers can still differ in premium, household discounts, pricing approach, rate history, administration, customer service, financial strength, availability, underwriting and additional non-insurance services.

Run These Three Checks Before You Choose

1 — How Much Am I Actually Saving?

Calculate the annual premium difference, not merely the monthly difference.

2 — Could I Comfortably Pay $2,950?

Don’t ask whether you expect to. Ask whether you could.

3 — Would I Still Be Comfortable if My Health Changed?

Future switching may require underwriting, so choose a structure you could realistically live with long term.

Compare Using Your Actual Premiums — Not National Averages

Medicare Supplement rates can differ by age, location, sex where permitted, tobacco status, household discounts, carrier, enrollment status and other factors.

ZIP + Available Carriers

Start with your ZIP code and the Medicare Supplement companies actually available in your area.

Standard G + HDG Premiums

Compare the actual premium quotes for standard Plan G and High-Deductible G.

Annual Premium Difference

Convert the monthly difference to annual dollars before judging whether HDG savings are meaningful.

Possible HDG Exposure

Compare premium savings with the qualifying Medicare cost-sharing you could pay under HDG.

Enrollment + Underwriting

Review protected enrollment rights, guaranteed-issue situations and potential medical underwriting.

Cash Flow + Long-Term Goals

Decide whether you can comfortably handle variable healthcare costs and maintain the policy if your needs change.

Compare Plan G & High-Deductible Plan G

Not sure whether standard Plan G or High-Deductible Plan G is the better fit for you? Tell us a few details and we’ll help you compare available options, premiums, deductibles, and potential out-of-pocket costs.

Frequently Asked Questions: Plan G vs High-Deductible Plan G

What is the High-Deductible Plan G deductible in 2026?

The High-Deductible Plan G deductible is $2,950 in 2026. The amount is established annually and can change from year to year.

Generally, no. Payment of the Medicare Part B deductible generally counts toward the High-Deductible Plan G deductible even though the Part B deductible itself is not a covered Plan G benefit.

After the high deductible has been satisfied, High-Deductible Plan G provides the same standardized Plan G benefits. The primary difference is when the policy begins paying those benefits.

Yes. Original Medicare continues paying its applicable share of Medicare-covered expenses. Before the HDG deductible is met, you generally pay qualifying cost sharing.

Its monthly premium is generally lower, but total annual cost depends on the premium difference and how much qualifying Medicare cost sharing you incur.

Multiply the monthly premium savings by 12, then compare those annual savings with the additional medical expenses you might pay under HDG.

Qualifying Medicare-covered deductibles, coinsurance and copayments that fall within Plan G benefits generally accumulate toward the high deductible. Premiums and non-covered expenses do not.

Yes. It is an annual deductible and the applicable amount is established for each calendar year.

Possibly, but the switch may require medical underwriting outside a protected Medigap enrollment or guaranteed-issue situation, depending on your state and circumstances.

Neither standard Plan G nor High-Deductible Plan G includes modern outpatient Medicare prescription drug coverage. A separate Part D plan can generally be considered.

HDG does not use Plan N’s standardized up-to-$20 office visit copayment structure. Before meeting the HDG deductible, however, you are responsible for qualifying Medicare Part B cost-sharing that standard Plan G would otherwise pay.

Yes. It provides Plan G’s standardized hospital benefits after the applicable deductible has been met. Before that point, qualifying hospital cost-sharing can be your responsibility and can accumulate toward the HDG deductible.

HDG works alongside Original Medicare rather than functioning like a standard Medicare Advantage HMO or PPO network. Generally, you can use providers nationwide that accept Medicare. Medicare SELECT policies can have additional restrictions.

It can be, particularly when the premium savings are substantial and the beneficiary has enough savings to comfortably handle the deductible. Being healthy by itself does not automatically make HDG the better financial choice.

No. High-Deductible Plan G is offered in some states, and individual insurance companies may or may not sell it in your area.

Plan G and High-Deductible G Aren't Competing on Benefits

They’re competing on how you want to pay for risk. Standard Plan G means a higher predictable premium and lower Medicare cost sharing. High-Deductible G means a lower predictable premium and greater financial variability with potential savings.

The most important number is the annual premium difference between the two plans.

Medicare Plan Assistance

Helping make Medicare easier to understand.

Independent Medicare Guidance
Medicare Plan Assistance is not connected with or endorsed by the U.S. government or the federal Medicare program. Medicare Supplement availability, premiums, discounts, underwriting requirements and enrollment rights vary by state, carrier and individual circumstances.

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