If you are enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance), you’re eligible for Medigap. Also known as Medicare Supplement, Medigap covers many out-of-pocket costs that Original Medicare doesn’t. There are 10 Medigap plans — A-D, F, G, K, and L-N — each letter providing standard coverage, regardless of provider.
One of the most popular Medigap plans, Plan G, provides the most comprehensive coverage available for new enrollees. But there are two versions of Medigap Plan G: the standard Plan G and High Deductible Plan G. Both provide the same coverage but have different cost structures. Keep reading to learn the pros and cons of each.
What is Medigap High Deductible Plan G?
Aside from Plan F, which is no longer available to those who turned 65 after January 1, 2020, Plan G is one of the most comprehensive Medigap plans. It covers:
- Part A coinsurance
- An additional 365 lifetime reserve days
- Part B coinsurance or copayment
- First three pints of blood
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B excess charges
- 80% of foreign emergency travel
Given the scope of coverage, Plan G also has a higher monthly premium than most Medigap plans. With Plan G, enrollees typically don’t have to worry about unexpected out-of-pocket costs for the whole year. Aside from the Part B deductible, Medigap covers most Original Medicare out-of-pocket costs.
High Deductible Plan G, on the other hand, has lower monthly premiums and a higher deductible ($2,950 in 2026). While standard Plan G coverage kicks in immediately, High Deductible Plan G doesn’t start paying out until you’ve met the deductible, so you’re responsible for paying for the above benefits until then.
How does High Deductible Medigap work?
There are pros and cons to Medigap High Deductible Plan G. For one, the low monthly premium makes it a more cost-effective solution for people who want Medigap coverage but can’t afford the high premium.
In a “good health year,” High Deductible Plan G is a cheaper option than standard Plan G. That is, if you’re in relatively good health and don’t need frequent specialist visits or expensive procedures, the low premium may work better for you.
Also, note that paying the Part B deductible counts towards the High Deductible Plan G’s total out-of-pocket deductible.
When does standard Plan G make more sense?
Standard Plan G offers the same benefits as High Deductible Plan G but with more predictable costs. Plan G has a higher monthly premium, which means fewer out-of-pocket costs. This is great news for budget-conscious enrollees who have a limited appetite for cost fluctuations throughout the plan year.
This plan is especially beneficial in a “bad health year.” Because your costs are more predictable, it’s easier to plan a budget around out-of-pocket expenses regardless of how frequently you see specialists or get costly procedures. Getting care more frequently usually has little effect on your Plan G costs.
A high deductible plan may not be the best plan forever
Medigap eligibility starts the first month you turn 65 and enroll in Part B. During the six-month Medigap Open Enrollment Period, you can switch Medigap plans to find the right one for you. After those six months, however, you may not be able to change plans — even from High Deductible to standard Plan G — without medical underwriting or guaranteed issue rights.
High Deductible Plan G may not be a good idea if you choose a plan solely from a cost perspective and don’t consider future health needs. For example, though a 65-year-old with few health conditions could pay less overall with a High Deductible Plan G, a 70-year-old with a chronic condition who needs to see a specialist may pay more. Health statuses can change at any time, so it’s important to schedule your Annual Wellness Visit to make a plan with your doctor and determine your long-term needs, then use that information as you’re comparing Medigap plans.
Making an informed decision about Medigap
Ultimately, both Medigap plans provide excellent coverage and supplement Original Medicare costs, which can get out of hand easily. Standard Plan G provides predictable costs throughout the plan year, while High Deductible Plan G offers healthcare cost savings in good health years.
Essentially, you’re choosing between predictability and potential savings. The best choice for you will depend on factors like your age, health status, and budgetary needs. This can be challenging to navigate alone, and rules vary by state. If you need additional support evaluating Medigap plans, our advisors are available to help.
