High-Deductible Plan G: Lower Premiums, Same Coverage After the Threshold
HD Plan G gives you the full protection of Plan G — but you pay a low monthly premium and cover the first $2,870 in Medicare cost-sharing yourself before the plan kicks in.
Typical Monthly Premium
$28–$70
Dramatically lower than standard Plan G
2026 High Deductible
~$2,870
Adjusts annually with inflation; you cover this before plan pays
After Deductible Met
$0
Identical coverage to standard Plan G for the rest of the year
What HD Plan G Covers
HD Plan G has exactly the same benefit structure as standard Plan G — with one critical difference: you are responsible for all Medicare cost-sharing (deductibles, coinsurance, and copays) up to the annual deductible threshold (~$2,870). Once that threshold is met, the plan pays everything Plan G would normally cover.
| Benefit | HD Plan G Coverage |
|---|---|
| Part A coinsurance and hospital costs (up to an additional 365 days after Medicare benefits are used) | Covered — after deductible |
| Part A deductible ($1,736 in 2026) | Covered — after deductible |
| Part A hospice care coinsurance or copayment | Covered — after deductible |
| Part B coinsurance or copayment (20% of most outpatient services) | Covered — after deductible |
| Part B deductible ($283 in 2026) | Not Covered (same as Plan G) |
| Part B excess charges | Covered — after deductible |
| Blood (first 3 pints) | Covered — after deductible |
| Skilled nursing facility care coinsurance | Covered — after deductible |
| Foreign travel emergency (up to plan limits) | Covered (80%) — after deductible |
The HD Plan G deductible threshold adjusts annually based on inflation. Medigap plans are standardized in every state except Massachusetts, Minnesota, and Wisconsin.
The Math: When HD Plan G Wins
The appeal of HD Plan G is straightforward: if you're healthy and rarely use healthcare, your total annual cost (premiums + out-of-pocket) will likely be far less than what you'd pay for standard Plan G. Here's an example with typical figures:
Example Comparison (annual costs, illustrative)
Standard Plan G: ~$175/month premium = $2,100/year in premiums + $0 after Part B deductible
HD Plan G: ~$45/month premium = $540/year in premiums + up to $2,870 if you max the deductible
HD Plan G break-even: You'd need over $2,430 in Medicare cost-sharing before standard Plan G pays for itself. In a healthy year, HD Plan G saves you $1,560 or more.
The trade-off: if you have a major health event — a hospitalization, surgery, or extended care — you could owe up to $2,870. But your total worst-case exposure is capped. And in exchange, you could save $1,000–$1,500 per year in healthy years.
Who HD Plan G Is Best For
Strong fit if you:
- Are newly eligible for Medicare and in good health with few ongoing conditions
- Want the lowest possible monthly premium without giving up catastrophic protection
- Have savings or an HSA-style cushion to absorb the deductible if needed
- Understand that most years you'll come out ahead, and you're comfortable with occasional higher-use years
Less ideal if you:
- Have multiple chronic conditions or expect frequent specialist visits and hospitalizations
- Are on a fixed income where an unexpected $2,870 bill would be a hardship
- Prefer the simplicity of knowing your out-of-pocket is zero on covered services (standard Plan G is better)
- Want to minimize paperwork — HD Plan G involves tracking your deductible accumulation
Compare Other Plan Letters
HD Plan G can be an excellent value — but it's not right for everyone. We'll look at your health history, expected usage, and budget to tell you whether it actually pencils out for your situation.
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