High Deductible Medicare Supplement Plan G - Premium Savings

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

This plan balances lower monthly premiums with the possibility of higher out-of-pocket costs. For some people, the savings are undeniable, but for others, the risk of hitting the deductible outweighs the benefits.

Let’s dive and 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.

For some, this risk is manageable, but for others – especially those with unpredictable or frequent healthcare needs – it can feel like walking a financial tightrope.

In a nutshell:

• In 2025, the 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.

Based on my experience, High-Deductible Plan G is ideal for healthy individuals, budget-conscious people seeking lower premiums, and those prepared to cover the deductible for unexpected medical expenses.

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Comparing High-Deductible Plan G vs. Standard Plan G vs. Plan N

Choosing the right Medigap plan – High-Deductible Plan G, Standard Plan G, or Plan N – requires a detailed look at how each plan fits your specific healthcare needs, financial goals, and comfort level with out-of-pocket expenses. Here’s an in-depth analysis based on coverage, costs, and value for different health scenarios.

High-Deductible Plan G

Premiums:
High-Deductible Plan G stands out for its low premiums. Depending on your state and insurer, premiums for this plan can be 50-70% lower than those of Standard Plan G.

For instance, where a Standard Plan G might cost $150-$200 per month, a High-Deductible Plan G could cost $40-$80 per month. That’s a savings of $1,000-$1,800 annually, making it an attractive option for budget-conscious individuals.

Deductible and Out-of-Pocket Costs:
The plan 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.

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.

Who Should Consider It?
High-Deductible Plan G is ideal for:

• Healthy individuals: Those with minimal medical needs who don’t foresee frequent doctor visits or hospital stays.
• Risk-tolerant enrollees: People comfortable managing their medical costs up to the deductible in exchange for lower premiums.
• Budget-conscious retirees: Those who want to reduce their monthly expenses while still having a safety net for major medical events.

Standard Plan G

Premiums:
Standard Plan G has higher premiums compared to High-Deductible Plan G, typically ranging from $150 to $200 per month. While this might seem steep, it eliminates the $2,780 deductible, offering peace of mind to those who prefer predictable healthcare costs.

Deductible and Out-of-Pocket Costs:

The only out-of-pocket cost you’re responsible for 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.

This means you’re protected from unexpected medical costs beyond the small deductible, making it the most comprehensive option of the three.

Who Should Consider It?
Standard Plan G is a great fit for:

• Frequent healthcare users: Those with chronic conditions or high medical needs who want predictable and comprehensive coverage.
• Risk-averse individuals: People who want the financial stability of knowing their costs are capped at a low level.
• Travelers: This plan covers Medicare Part B excess charges, which may arise from doctors who don’t accept Medicare assignment – an important consideration for frequent travelers.

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

• Standard Plan G is better for those who prefer predictable costs and comprehensive coverage with minimal financial risk.
• High-Deductible Plan G is ideal for those willing to take on financial risk in exchange for a significantly lower monthly premium.
• If you rarely use healthcare services, the savings from lower premiums could outweigh the risk of paying the full deductible.

Plan N

Premiums:
Plan N is often slightly cheaper than Standard Plan G, with premiums ranging between $120 and $180 per month, 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 co-pays.

Out-of-Pocket Costs:

• $20 co-pay for most doctor visits.
• $50 co-pay for ER visits (waived if you’re admitted to the hospital).
• 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 add up over time if you require frequent care.

Who Should Consider It?
Plan N works well for:

Healthy individuals: Those who don’t mind paying occasional co-pays and are willing to take the risk of encountering Part B excess charges.

Moderate healthcare users: People who expect some level of medical care but don’t anticipate ongoing, high-cost treatments.

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.

If you’re considering Plan N vs. Plan G, the key factors to assess include whether you’re comfortable paying small copays and if your healthcare providers charge Part B excess fees, which are not covered under Plan N.

Out-of-Pocket Cost Comparison: Plan G vs. Plan N

• Plan N is a good choice for those comfortable with small out-of-pocket costs in exchange for a lower premium.
• If your doctor charges Part B excess fees, Plan G might be a better option, as Plan N does not cover them.
• Plan G is the better option for those who want comprehensive coverage without worrying about extra fees.

How Monthly Premiums Compare

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

💡 Initial Observations

• High-Deductible Plan G has the lowest premiums, saving enrollees $1,000 – $1,500 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 10 years. Here’s how the total premium costs add up over time:

• 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.

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 guaranteed. It depends on one critical factor, your health during the plan change. Here’s what you need to know as someone who has helped clients navigate these transitions.

Understanding Underwriting Requirements

Outside of your initial enrollment period, most insurance companies require medical underwriting outside your initial enrollment period. 

• Initial Enrollment Period (IEP): 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: If you try to switch from a High-Deductible Plan G to a Standard Plan G later, most insurers will require underwriting. If you have developed health issues, they may deny your application or charge a higher premium.

Switching Plans Over Time

The ability to switch depends on several factors:

Your Health:
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.

State-Specific Rules:
Some states have rules that make switching easier:

• California and Oregon: Offer “birthday rules,” allowing 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: Guarantee access to Medigap plans year-round without underwriting.
  If you live in these states, you have more flexibility to switch later.

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

How Quickly Do You Reach the 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.

Low-Use Individuals

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.

Moderate Users

Clients who see a specialist a few times a year or require routine lab work tend to chip away at the deductible slowly. For example, a few $150 specialist visits, combined with some lab tests, might bring you halfway to the deductible. This is where the math comes into play – are the premium savings enough to justify the out-of-pocket costs?

High-Use Individuals

For those with chronic conditions or frequent doctor visits, meeting the deductible can happen quickly. 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.

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

How Does High-Deductible Plan G Work With Frequent Medical Visits?

High-Deductible Medicare Supplement Plan G offers comprehensive coverage, but its value depends on how often you need medical care. For those with frequent doctor visits, specialist appointments, or hospital stays, understanding how the deductible impacts costs is crucial.

Here’s an overview of how it works based on real-world examples I’ve seen.

How the Deductible Impacts Costs

With High-Deductible Plan G, you’re responsible for Medicare-approved costs until you reach the annual deductible of $2,870. This includes expenses like doctor visits, specialist appointments, and hospital stays. Once the deductible is met, the plan covers 100% of Medicare-approved expenses for the rest of the year.

Real-Life Example: A Moderate Healthcare User

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.

Real-Life Example: A High Healthcare User

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.

Key Takeaways

• Pros: Lower premiums and full coverage after meeting the deductible. Great for those with low annual medical expenses.
• Cons: Frequent users may hit the deductible quickly, negating premium savings. Requires upfront financial flexibility.

For those with ongoing conditions or high medical costs, Standard Plan G may offer better cost predictability. However, High-Deductible Plan G can be a smart option for individuals who manage routine care and want a safety net for larger, unexpected expenses.

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

When evaluating High-Deductible Medicare Supplement Plan G, one of the key considerations is how premiums change over time. While the plan’s low premiums are attractive upfront, it’s important to assess whether those premiums remain cost-effective as they increase year by year.

Based on historical data and firsthand experience with clients, here’s an in-depth look at premium trends and their long-term impact.

How Premium Increases Work for High-Deductible Plan G

Medicare Supplement premiums, including those for High-Deductible Plan G, typically increase annually.

How Do Premiums Increase Over Time? (Inflation & Rate Hikes)

While High-Deductible Plan G has lower premiums upfront, the question is: Do premiums for each plan increase at the same rate over time?

Medigap Premium Inflation Trends

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.

Historical Average Annual Premium Increases (Estimates Based on Past Trends)

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.

Historical Trends for High-Deductible Plan G

In my experience, premiums for High-Deductible Plan G tend to increase at a slower rate compared to Standard Plan G. Why?

• Lower Risk for Insurers: With a $2,870 deductible, insurers are less exposed to large claims, so they don’t need to raise premiums as aggressively.
• Healthy Risk Pool: This plan often attracts healthier, budget-conscious individuals, which helps stabilize costs.

For example:

• A client who enrolled in High-Deductible Plan G at age 65 paid $45 per month. By age 70, their premiums rose to $55 per month – a modest 22% increase over five years.
• By contrast, Standard Plan G premiums for the same client increased from $150 to $195 per month in the same timeframe, a 30% increase.

Historical Deductible Changes for High-Deductible Plan G

The deductible for High-Deductible Plan G is adjusted annually based on inflation and healthcare costs. Understanding how the deductible has changed over time can help predict future increases.

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

💡 Key Takeaways

• The deductible has increased consistently over the years, reflecting rising healthcare costs.
• If you choose High-Deductible Plan G, it’s wise to budget for a rising deductible over time.
• Despite deductible increases, premium savings may still outweigh higher deductibles for healthy individuals.

Emergency Costs: How to Prepare for the Deductible?

It’s important to be financially prepared for unexpected medical expenses. Here are practical strategies to help you budget for the deductible while maximizing the plan’s benefits.

Understanding the Deductible

With High-Deductible Plan G, you’ll cover all Medicare-approved costs up to $2,780 before the plan starts paying. These include hospital stays (Medicare Part A deductible) and 20% coinsurance for doctor visits and outpatient services (Medicare Part B). In emergencies like hospitalizations or surgeries, these costs can add up quickly, so having a plan in place is essential.

Budgeting for the Deductible

• 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.
• Redirect Premium Savings: High-Deductible Plan G 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.
• Use Supplemental Savings: If you have a Health Savings Account (HSA) from before enrolling in Medicare, use those tax-free funds for deductible expenses. Retirees can also set aside a portion of retirement savings for healthcare costs.

Additional Tips

• For large bills, consider interest-free payment plans offered by hospitals and providers.
• Assess your healthcare needs at the start of each year and plan your budget accordingly, especially if you expect significant medical expenses.

With the right strategies, you can effectively manage the deductible while taking full advantage of the plan’s benefits.

Is High-Deductible Plan G a Good Choice for Healthy Seniors?

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.

For individuals who rarely visit the doctor or need medical care beyond routine check-ups, paying lower premiums makes financial sense. The plan provides the same benefits as Standard Plan G after the deductible is met, ensuring protection 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.

This makes the plan an ideal balance of affordability and security. Additionally, the money saved on premiums can be redirected into a dedicated savings account to cover the deductible if needed, giving seniors financial flexibility while still being prepared for emergencies.

Choosing this plan is particularly appealing for seniors who value having a safety net for large medical expenses but don’t want to pay for coverage they’re unlikely to use. It aligns perfectly with the needs of healthy individuals looking to minimize fixed healthcare costs without sacrificing peace of mind.

Over time, the premium savings can accumulate to provide even more financial stability, making High-Deductible Plan G a practical and forward-thinking option for those with minimal healthcare needs.

Which Companies Offer High Deductible Plan G?

When exploring High-Deductible Plan G (HDG) options, it’s important to assess the Medigap insurance companies that offer these plans. While most major insurers provide standard Plan G, only a select few offer the High-Deductible version.

To help with your decision, here’s a comparison of Mutual of Omaha and Cigna, the two biggest nationwide companies that offer HDG:

Cigna

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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.

Key Highlights:

• Global Reach: Cigna serves over 15 million customers worldwide, offering a broad range of health and life insurance products.
• Financial Stability: The company holds an ‘A’ rating from A.M. Best, indicating strong financial health.
• Customer Service: Cigna is recognized for its quality customer service, with efficient claims processing and responsive support.

High Deductible Plan G example rates:

Male age 65 in Texas: $63.67

Female age 65 in Illinois: $48.96

Check out our full Cigna 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.

Key Highlights:

• Experience: With over a century in the insurance business, Mutual of Omaha has extensive experience with Medigap plans.
• Financial Strength: The company holds an ‘AA-‘ rating from A.M. Best, reflecting its solid financial foundation.
• Unique Benefits: Mutual of Omaha 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 rates:

Female age 65 in Pennsylvania: $55.46

Female age 65 in Florida: $75.09

Check out our Mutal of Omaha review to learn more.

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

High-Deductible Medicare Supplement Plan G offers significantly lower monthly premiums – often 50-70% less than standard Plan G – making it an attractive choice for budget-conscious Medicare enrollees. However, it comes with a $2,780 deductible that must be met before coverage kicks in.

This plan is ideal for healthy individuals who rarely visit the doctor, financially prepared enrollees who can cover unexpected medical expenses, and budget-conscious retirees looking for premium savings. However, for those with chronic conditions or frequent healthcare needs, the deductible can be met quickly, potentially negating the premium savings.

Compared to Standard Plan G, which has higher monthly costs but minimal out-of-pocket expenses, and Plan N, which offers moderate premiums with copays, High-Deductible Plan G is best suited for individuals willing to take on some financial risk in exchange for lower fixed costs.

Premiums for High-Deductible Plan G tend to increase at a slower rate compared to Standard Plan G, but the ability to switch plans later depends on state-specific regulations and medical underwriting. Ultimately, this plan is a great fit for healthy seniors looking for affordability while maintaining comprehensive Medicare coverage once the deductible is met.

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.