High-Deductible Medigap Plan G: Lower Premiums, Same Protection

Most people comparing Medigap plans focus on Plan G and Plan N without realizing there is a third option that splits the difference in a different way. High-Deductible Plan G, often written as HDG or HD Plan G, carries the same benefits as standard Plan G but with a significant annual deductible before those benefits kick in. In exchange, the monthly premium is dramatically lower, sometimes a third of what standard Plan G costs. For certain people, particularly healthy adults just entering Medicare, the math can strongly favor the high-deductible version.

Bryce's Take

HDG is the plan I recommend to healthy 65-year-olds who are bothered by paying $140 a month for coverage they rarely use. The math usually works in their favor for the first several years, and they pocket the premium savings. The caveat I always give: make sure you have money set aside to cover the deductible if a bad year comes. This is not the right plan for someone who will be stressed by a $2,000 bill.

How High-Deductible Plan G works

High-Deductible Plan G covers exactly the same services as standard Plan G: Part A coinsurance, Part B coinsurance, Part A deductible, skilled nursing facility coinsurance, and foreign travel emergency coverage. The difference is a single deductible. In 2025, the HDG deductible is $2,870. You pay 100% of Medicare-covered costs until your cost-sharing reaches $2,870. After that, HDG pays the same as standard Plan G, effectively zero additional out-of-pocket. The deductible resets each January 1.

The premium difference

Standard Plan G premiums in 2025 typically range from $100 to $175 per month depending on age, location, and carrier. High-Deductible Plan G from the same or comparable carriers often runs $30 to $70 per month, sometimes lower. The premium gap is the engine of the financial comparison. If standard Plan G costs you $140 per month and HDG costs $45 per month, you save $95 per month, or $1,140 per year, by choosing the high-deductible version.

The break-even calculation

With $1,140 in annual premium savings and a $2,870 maximum deductible, your break-even point is when your annual Medicare cost-sharing exceeds $1,140, meaning you used more than $1,140 in copays, coinsurance, and deductibles in a year. If your medical costs stay below that, HDG comes out ahead. If you have a serious illness, surgery, or hospitalization, you pay up to $2,870 in a bad year versus approximately zero with standard Plan G (after the Part B deductible). The question is whether the premium savings accumulated over multiple healthy years outweigh potential deductible years.

Who HDG is best suited for

High-Deductible Plan G is well-matched to adults who are newly eligible for Medicare and in good health, have low expected healthcare utilization in the near term, have assets or emergency savings to cover the deductible if needed, and prefer lower predictable monthly costs with occasional higher but capped exposure. It is also appealing to people who view insurance as catastrophic coverage rather than first-dollar coverage. HDG provides the same catastrophic protection as standard Plan G, you will never pay more than $2,870 in covered Medicare cost-sharing in a year, at a lower ongoing cost.

Interested in running the HDG vs standard Plan G math for your specific situation?

The premium difference and your expected healthcare usage are the two variables that determine which makes more sense. I can pull current rates from every carrier in your area and work through the comparison with you.

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Who should avoid it

HDG is a poor fit for people with chronic conditions requiring frequent specialist visits or outpatient procedures, anyone who has already experienced significant health events that will predictably require ongoing care, or anyone whose budget cannot absorb the full deductible in a bad year. The predictability of standard Plan G has genuine value for people managing complex health situations.

The predecessor: High-Deductible Plan F

Before the Medigap market changes of 2020, the comparable product was High-Deductible Plan F, which covered the Part B deductible as well. New enrollees can no longer purchase standard Plan F or HD Plan F. High-Deductible Plan G is now the primary high-deductible Medigap option available to Medicare beneficiaries who became eligible after January 1, 2020, and it carries a lower deductible than its predecessor did.

Frequently asked questions

Does High-Deductible Plan G count the Part B deductible toward the HDG deductible?

Yes. The $257 Part B deductible counts toward your HDG annual deductible. So you start each year with $257 already counting toward the $2,870 maximum, and only $2,613 of additional cost-sharing would need to occur before HDG kicks in fully.

Are there many carriers offering High-Deductible Plan G?

Fewer carriers offer HDG than standard Plan G, particularly in some markets. Availability varies significantly by state and zip code. Working with a broker who can identify all HDG options in your area is important, since the product may not appear prominently on comparison sites.

Can I switch from HDG to standard Plan G later if my health changes?

Potentially, but it typically requires passing medical underwriting outside your initial open enrollment period. If your health has changed significantly since you first enrolled, you may have difficulty switching to standard Plan G. This is a real consideration when choosing HDG at enrollment.

How does HDG work if I have a major hospitalization?

You pay cost-sharing until you hit $2,870 in covered Medicare cost-sharing for the year. After that, HDG covers the remaining approved costs just as standard Plan G would. For a major hospitalization, the Part A deductible ($1,676) counts toward your HDG annual deductible, and additional Part A and Part B cost-sharing accumulates until you reach the cap.

Bryce Casson

Licensed Independent Medicare Broker

Bryce Casson is an independent Medicare insurance broker who works with every major carrier. He does not represent any single insurer, which means his recommendations are based on what actually fits each client's situation, not on commissions or quotas.