High Deductible Medicare Supplement Plan G

Medicare Supplement High-Deductible Plan G offers lower monthly premiums but comes with the chance of higher out-of-pocket costs. For some, the savings are a no-brainer, but for others, the high deductible might not be worth it.

As an experienced Medicare agent, I’ve guided many clients through the decision of whether Medicare Supplement High-Deductible Plan G (HDG) is the right fit.

In this review, we’ll cover:

• How HDG works
• HDG vs. standard Medigap Plan G
• Out-of-pocket costs and premium amounts
• Switching plans
• Best HDG companies

Let’s dive in and first look into how this plan works.

How Does High Deductible Plan G Work?

The standout feature of High-Deductible Plan G is its affordability. Premiums are often 50-70% lower than those of a standard Plan G, which can result in savings of $600 to $1,200 per year, depending on your location and insurer.

The trade-off is the $2,870 annual deductible (2025 amount), which must be met before the plan begins covering costs. This means that routine doctor visits, lab work, or even a minor emergency will come out of your pocket until you hit that amount.

This risk might be manageable for some, but for others—especially those with unpredictable or frequent healthcare needs—it can feel like balancing on a financial tightrope.

In a nutshell:

• The 2025 annual deductible is $2,870 (this amount can change each year).
• Until you reach this deductible, you are responsible for out-of-pocket costs that standard Plan G would typically cover (e.g., Medicare Part A and B coinsurance, copayments, and excess charges).
• Once the deductible is met, the plan covers all the same benefits as regular Plan G, including Part B excess charges.

From my experience, High-Deductible Plan G is a great fit for healthy people, anyone looking to save on premiums, and those okay with paying the deductible for unexpected medical costs.

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High-Deductible Plan G vs. Standard Plan G

Picking the right Medigap plan—High-Deductible Plan G or standard Plan G—comes down to understanding how each option matches your healthcare needs, budget, and comfort with out-of-pocket costs.

Here’s a breakdown of coverage, costs, and value to help you decide what works best for your situation.

#1. Premiums

Standard Plan G has higher premiums than High-Deductible Plan G, typically ranging from $150 to $200 per month. While this might sound like a lot, it eliminates the $2,780 deductible, giving peace of mind to anyone who likes more predictable healthcare costs.

For example, where standard Plan G might cost $150-$200 per month, a High-Deductible Plan G could cost $40-$80 per month.

That amounts to a savings of $1,000–$1,800 a year, making it a great choice for anyone looking to save money on premiums.

#2. Deductibles and Out-of-Pocket Costs

HDG requires you to pay a deductible of $2,870 before it starts covering Medicare-approved expenses. After you hit the deductible, the plan functions identically to standard Plan G, covering Part B excess charges, coinsurance, and other gaps in Original Medicare.

The only out-of-pocket cost you’re responsible for with standard Plan G is the Medicare Part B deductible ($257 in 2025). Once that’s met, the plan covers nearly all Medicare-approved expenses, including Part B excess charges.

If you don’t anticipate high medical costs in a given year, the savings from the lower premiums can far outweigh the risk of meeting the deductible.

Here’s a breakdown of key cost differences between the two plans:

Service Type	Standard Plan G	High-Deductible Plan G
Monthly Premium	$150 – $200	$40 – $80
Annual Deductible	$0	$2,870
Doctor Visits	Covered after Part B deductible of $257	100% out-of-pocket until the $2,870 deductible is met
Hospital Stays	Covered after Part A deductible ($1,676 in 2025)	100% out-of-pocket until the $2,870 deductible is met
Outpatient Care	Covered after Part B deductible	100% out-of-pocket until the $2,870 deductible is met
Part B Excess Charges	Covered	Covered after deductible

In summary:

High-Deductible Plan G is a great option for healthy, budget-minded individuals who don’t mind taking on a bit more risk in exchange for lower premiums and higher out-of-pocket costs.

On the other hand, standard Plan G works well for people who visit the doctor more often, prefer predictable costs, or want solid, comprehensive coverage upfront—especially if they travel a lot.

Medigap Plan G vs. Medigap Plan N

Plan N is a popular middle-ground option between High-Deductible Plan G and standard Plan G. While it offers lower premiums than standard Plan G, it does come with some out-of-pocket expenses, particularly copays for doctor and ER visits and no coverage for Medicare Part B excess charges.

Let’s compare Plan G vs. Plan N in a little more detail.

Plan G vs. Plan N: Premiums

Plan N is often slightly cheaper than standard Plan G, with monthly premiums ranging between $120 and $180, depending on your location and insurer.

While it doesn’t have the ultra-low premiums of High-Deductible Plan G, it offers a middle-ground option for those willing to accept some out-of-pocket costs including:

• $20 co-pay for most doctor visits.
• $50 co-pay for ER visits (waived if you’re admitted to the hospital).

Plan N does not cover Medicare Part B excess charges, which can be up to 15% above Medicare’s approved amount if your provider doesn’t accept Medicare assignment.

While these co-pays and charges are manageable for many, they can add up over time if you require frequent care.

Here’s a breakdown showing the differences between Plan G and Plan N.

In summary:

Plan N is ideal for healthy individuals comfortable with occasional co-pays and potential Part B excess charges, as well as moderate healthcare users who expect some medical care but not frequent, high-cost treatments.

Overall, Plan G is the better option for those who want comprehensive coverage without worrying about extra fees.

HDG vs. Plan G and Plan N: Premium Comparison

While monthly premium costs vary by location, age, and insurer, here’s a general comparison:

• Premium Analysis:

  High-Deductible Plan G has the lowest premiums, saving enrollees $1,000 – $1,800 per year compared to standard Plan G.

  Plan N is more affordable than standard Plan G, but copays and excess charges could increase total costs over time.

  Standard Plan G offers the most comprehensive coverage but comes at a higher premium cost.

How Much Can You Save in the Long Run?

Let’s assume an individual stays on the same plan for 5-10 years. Here’s how the total premium costs add up over time:

Plan Type	5-Year Total Cost (Premiums Only)	10-Year Total Cost (Premiums Only)
High-Deductible Plan G	$2,400 – $4,800	$4,800 – $9,600
Plan N	$7,200 – $10,800	$14,400 – $21,600
Standard Plan G	$9,000 – $12,000	$18,000 – $24,000

Our analysis:

• In 10 years, someone on High-Deductible Plan G could save $8,400 – $14,400 compared to standard Plan G.
• Plan N offers moderate savings, but costs can fluctuate depending on medical usage (copays and excess charges).
• If you rarely need medical care, High-Deductible Plan G maximizes long-term savings.

• State-Specific Rules:
  • California and Oregon offer “birthday rules,” which allow you to switch to a plan with equal or lesser benefits without underwriting during your birthday month.
  • Missouri has an “anniversary rule,” which allows switching plans around the anniversary of your Medigap policy.
  • New York and Connecticut offer guaranteed access to Medigap plans year-round without underwriting.

How Quickly Do You Reach the High Deductible?

How quickly you meet the $2,870 deductible for High-Deductible Plan G depends entirely on your healthcare usage. Some clients barely scratch the surface of their deductible in a year, while others meet it within months.

Let’s break it down based on typical scenarios and compare it to other Medigap plans.

Scenario: Low-Use Members

If you only visit the doctor for annual check-ups or occasional minor concerns, you might never reach the deductible in a given year. Many of my healthier clients report spending just a few hundred dollars annually on Medicare-approved services, leaving most of the deductible untouched.

This is where High-Deductible Plan G shines – its lower premiums offset the minimal out-of-pocket expenses.

Scenario: Moderate Users

Clients who see a specialist a few times a year or require routine lab work tend to reduce their deductible slowly.

One client with arthritis visited her primary care doctor monthly and a specialist quarterly. Her total out-of-pocket costs (doctor visits, lab work, and imaging) came to $660 for the year.

Combined with her $600 in annual premiums, her total was **$1,260** – less than the cost of a standard Plan G, which would’ve been $1,800 annually in premiums alone.

This is where the math comes into play. We can help you answer the question: Are the premium savings enough to justify the out-of-pocket costs?

Scenario: High-Use Members

Meeting the deductible can happen quickly for those with chronic conditions or frequent doctor visits. A single hospital stay, outpatient surgery, or a series of specialist appointments could easily push you over the $2,870 mark in just a few months.

Another client, managing diabetes and heart disease, exceeded the $2,870 deductible with costs from primary care, specialist visits, a hospital stay, and lab work.

Her total costs, including premiums, reached $3,300, higher than the $2,100 in premiums and deductible costs she would’ve paid with standard Plan G.

For these clients, I often find that the predictability of lower out-of-pocket costs offsets the higher premiums of a standard Plan G or Plan N.

Premium Increases Over Time: Is It Still a Good Deal?

While High-Deductible Plan G has lower premiums upfront, another question is:

Do premiums for this plan increase at the same rate over time?

Premiums for all Medigap plans increase over time, but at different rates due to factors like:

• Age-Attained Pricing: Some insurers raise premiums yearly as you age.
• Healthcare Cost Inflation: Medigap plans adjust premiums for rising medical costs.
• Plan Popularity: Less popular plans may see higher rate increases.

Here’s a brief breakdown showing the average annual premium rate increases for the most popular Medigap plans (based on previous trends).

Historical Average Annual Premium Increases

Plan Type	Average Annual Premium Increase	5-Year Increase Estimate	10-Year Increase Estimate
High-Deductible Plan G	3 – 5%	$2 – $5 per month increase	$5 – $10 per month increase
Plan N	5 – 7%	$6 – $12 per month increase	$12 – $25 per month increase
Standard Plan G	6 – 10%	$10 – $20 per month increase	$20 – $50 per month increase

Key Takeaways:

High-deductible Plan G premiums increase the slowest, as insurers take on less risk due to the high deductible.

Standard Plan G sees the largest premium hikes because it covers more and is popular among high-use beneficiaries.

Over 10+ years, Plan N and standard Plan G may see significant price increases, making High-Deductible Plan G an even better deal over time.

Deductible Changes for High-Deductible Plan G

The HDG yearly deductible is adjusted annually based on inflation and healthcare costs. Understanding how the deductible has changed over time can help predict future increases.

Here’s a breakdown of historical deductible changes for HDG:

Year	Deductible Amount
2021	$2,370
2022	$2,490
2023	$2,700
2024	$2,800
2025	$2,870

In summary:

The deductible for High-Deductible Plan G has steadily increased due to rising healthcare costs. While it’s important to budget for this, the premium savings may still benefit healthy individuals.

Emergency Costs: How to Prepare for the Deductible?

Here are practical strategies to help you budget for the deductible while maximizing the plan’s benefits.

#1. Build an Emergency Medical Fund: Set aside $2,870 in a high-yield savings account and contribute monthly. For instance, saving $225 per month will fully cover your deductible in a year.

#2. Redirect Premium Savings: High-Deductible Plan G monthly premiums are often $100+ lower than standard Plan G. Use the difference to grow your emergency fund. Over time, these savings can fully cover your deductible without straining your budget.

#3. Use Supplemental Savings: If you had a Health Savings Account (HSA) before enrolling in Medicare, use those tax-free funds for deductible expenses. Retirees can also set aside a portion of their retirement savings for healthcare costs.

With the right approach, you can manage the deductible smoothly and still maximize your plan’s benefits.

Which Medigap Companies Offer High Deductible Plan G?

When exploring High-Deductible Plan G options, it’s important to research all the Medigap companies that offer the plan.

While most major insurers provide standard Plan G, only a select few offer a high-deductible version.

To help you make your decision, here’s a comparison between Mutual of Omaha and Cigna, the two biggest nationwide companies that offer HDG.

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Cigna Overview

Cigna is a global health services company with a strong presence in the Medicare Supplement market.

They offer a range of Medigap plans, including High-Deductible Plan G, designed to provide lower monthly premiums in exchange for a higher deductible.

Cigna is known for its extensive network and customer-centric approach.

Cigna’s Key Offerings:

• Up to 25% premium discounts
• An ‘A’ rating from A.M. Best indicates strong financial health
• Access to a Healthy Rewards program
• Recognized for its quality customer service, with efficient claims processing and responsive support
• Dental plan options

High-Deductible Plan G example premiums:

• Male age 65 in Texas: $63.67
• Female age 65 in Illinois: $48.96

Check out our full Cigna Medicare Supplement review to learn more.

Mutual Of Omaha

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Mutual Of Omaha Overview

Established in 1909, Mutual of Omaha has a long-standing history in the insurance industry.

They offer a variety of Medicare Supplement plans, including High-Deductible Plan G, aiming to provide comprehensive coverage options to meet diverse needs.

Mutual of Omaha’s Key Offerings:

• Extensive experience with Medigap plans
• Holds an ‘AA-‘ rating from A.M. Best, reflecting its solid financial foundation
• Offers exclusive benefits to customers, such as a 12% household discount, no policy fees, guaranteed renewability, and a 30-day free look period

High-Deductible Plan G example premiums:

• Female age 65 in Pennsylvania: $55.46
• Female age 65 in Florida: $75.09

Check out our Mutal of Omaha Medicare Supplement review to learn more.

Can You Switch From High-Deductible Plan G to a Standard Plan Later?

Switching from a High-Deductible Medicare Supplement Plan G to a standard Plan G later is possible, but it’s not always easy or guaranteed. 

Here’s what you need to know as someone who has helped clients navigate these transitions.

#1. Understand Enrollment Periods

• Initial Enrollment Period (IEP): During the six months after enrolling in Medicare Part B, you have a guaranteed-issue right to buy any Medigap policy without underwriting. This is the best time to choose your plan, as insurers cannot deny you or charge you higher premiums based on your health.
• After IEP Ends: Most insurers will require underwriting if you try to switch from a High-Deductible Plan G to a standard Plan G later. They may deny your application or charge a higher premium if you have developed health issues.

#2. Be Aware of Medical Underwriting

Outside of your initial enrollment period, most insurance companies require medical underwriting. If you remain in good health, passing medical underwriting to switch to a standard Plan G is more likely.

For example, I’ve had clients in excellent health who successfully switched years after initially choosing a high-deductible plan.

However, if you develop a chronic condition like diabetes or heart disease, the odds of approval decrease.

Each insurer sets its underwriting guidelines. Some companies are more lenient than others, so shopping around can improve your chances of approval.

We have worked with both Cigna and Mutual of Omaha for many years, and you can’t go wrong with either choice. Both companies offer strong financial stability, excellent customer service, and a long history in the Medicare Supplement market.

Since the benefits of High-Deductible Plan G are standardized across all providers, the key factor in your decision should be who offers the most competitive rates in your area.

Comparing pricing and any available discounts will help ensure you get the best value for your coverage.

Bottom Line: Is HDG a Good Choice?

High-Deductible Plan G is an excellent choice for healthy seniors because it allows them to save significantly on monthly premiums while maintaining comprehensive Medicare coverage.

Paying lower premiums can be a smart choice if you don’t visit the doctor often or only need routine check-ups. Once you hit the deductible, the plan offers the same benefits as standard Plan G, giving you coverage for major, unexpected medical events—without the higher upfront costs of other plans.

For those in good health, the likelihood of reaching the deductible is low, which means their overall healthcare costs are often limited to the premium and a few minor out-of-pocket expenses.

High-Deductible Medicare Supplement Plan G has much lower monthly premiums—often 50-70% less than regular Plan G—making it a great option for Medicare enrollees looking to save money.

If there’s anything we can do to help make your decision-making easier, we’d be happy to—feel free to give us a call.

Sources: Cigna |  Mutual of Omaha

FAQs

• What is the difference between Medigap Plan G and High Deductible Plan G?

  Traditional Plan G covers the same benefits as High Deductible Plan G; the difference is the High deductible version has a $2,870 deductible, whereas the conventional option has no deductible.

• What is the deductible for High Deductible Plan G in 2025?

  The annual deductible amount for 2025 is $2,870.

• How much does High Deductible Plan G cost?

  The average cost is $65.00 per month but varies by age, gender, location, and health class.