Medicare High Deductible Plan G: Pros, Cons and Costs
High deductible Plan G is a cheap way to have great coverage if you get very sick.
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High deductible Plan G's average cost is $49 per month for a 65-year-old. And you typically won't pay more than $2,870 in a year for medical care, which is the 2025 deductible.
High deductible Plan G is a type of Medicare Supplement plan, which is also called Medigap. Its level of coverage is in the middle between the great benefits of regular Medigap Plan G and the coverage of a typical Medicare Advantage plan.
When to choose high deductible Plan G
What are the downsides of high deductible Plan G?
How does high deductible Plan G work?
High deductible Plan G will pay for nearly all of your medical care after you've met the $2,870 deductible.
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Before your spending for the year reaches $2,870, you'll only have Original Medicare coverage.
- That means you'll have to pay the deductibles of Original Medicare, also called Parts A and B.
- Then you'll pay about 20% of your medical bills, which is your coinsurance under Original Medicare.
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After your spending reaches $2,870, the high deductible Medicare policy kicks in.
- This means your medical care will usually be free for the rest of the year because Plan G covers nearly all types of medical costs.
To meet the Plan G deductible, you'll add together anything you've spent on medical care. This includes doctor bills, tests, treatment, hospital care and anything you've spent toward the deductibles of Original Medicare (Parts A and B). It doesn't include your monthly bills or prescriptions you take at home.
Year | Deductible |
|---|---|
| 2025 | $2,870 |
| 2024 | $2,800 |
Because high deductible Plan G pays for most of your medical costs once your coverage kicks in, it is basically a cap on your medical bills.
This protects you from having high medical bills if you need expensive medical care.
With all Medigap plans, your coverage is stacked on top of the Original Medicare coverage you get from the government. This means you'll get the benefits of both policies.
Cost and coverage of high deductible Plan G
High deductible Plan G costs an average of $49 per month in 2025 for a 65-year-old woman.
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High deductible Plans G is about a third of the price of regular Plan G, and it's the cheapest Medigap plan you can buy.
High deductible Plan G has the same coverage as regular Plan G. The only difference between the two plans is having to pay the deductible.
High deductible Plan G vs. other Medigap plans
Average costs are for a 65-year-old woman who does not smoke. Rates vary by location, age, gender and other factors. Plan N has extra copays for some doctor visits and trips to the ER.
Both Plan G and high deductible Plan G cover nearly all types of medical costs. The only thing they don't cover is the Medicare Part B deductible, which is $257 in 2025.
High deductible Plan G will start paying out after you've spent $2,870, which is after you get about $13,322 in medical care from doctors or other outpatient care. You'll have coverage from Original Medicare before reaching your Plan G deductible.
Example medical costs with high deductible Plan G
- Billed by the doctor or medical office: $13,322
- You pay the Part B deductible: $257
- You pay 20% of the rest: $2,613 Part B coinsurance
This means you've spent $2,870 out of pocket and high deductible Plan G would cover the rest of your medical bills.
Your costs for going to the hospital or getting inpatient care also count toward your Medigap deductible. However, the costs add up slightly differently because hospital stays are under Part A coverage.
Pros and cons of high deductible Plan G
Pros of high deductible Plan G
- Cheapest Medigap plan you can get
- Like all Medigap plans, you can go to nearly any doctor or hospital
- Gives you a pretty good cap on your medical costs
Cons of high deductible Plan G
- Coverage doesn't kick in until you've spent a lot
- Your medical costs change based on your medical needs
- Fewer companies offer plans
High deductible Plan G vs. regular Plan G
If you're healthy or you only need basic medical care, high deductible Plan G is cheaper overall than regular Plan G.
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Comparing costs based on your health needs
Annual cost comparison
High Deductible Plan G
Regular Plan G
Medical needs | High deductible Plan G | Regular Plan G |
|---|---|---|
| Healthy | $894 | $2,165 |
| Typical health needs | $1,394 | $2,165 |
| Moderately sick | $2,794 | $2,165 |
| Very sick | $3,458 | $2,165 |
| Extremely sick | $3,458 | $2,165 |
Total yearly cost by health status, including the cost of a plan and your medical costs.
Annual cost comparison
Medical needs | High deductible Plan G | Regular Plan G |
|---|---|---|
| Healthy | $894 | $2,165 |
| Typical health needs | $1,394 | $2,165 |
| Moderately sick | $2,794 | $2,165 |
| Very sick | $3,458 | $2,165 |
| Extremely sick | $3,458 | $2,165 |
Total yearly cost by health status, including the cost of a plan and your medical costs.
High Deductible Plan G
Medical needs | Cost of high deductible Plan G | Medical costs | Total |
|---|---|---|---|
| Healthy | $588 | $306 | $894 |
| Typical health needs | $588 | $806 | $1,394 |
| Moderately sick | $588 | $2,206 | $2,794 |
| Very sick | $588 | $2,870 | $3,458 |
| Extremely sick | $588 | $2,870 | $3,458 |
Total yearly cost by health status using the average cost of a plan for a 65-year-old-woman and deductible rates for 2025.
Regular Plan G
Medical needs | Cost of Plan G | Medical costs | Total |
|---|---|---|---|
| Healthy | $1,908 | $257 | $2,165 |
| Typical health needs | $1,908 | $257 | $2,165 |
| Moderately sick | $1,908 | $257 | $2,165 |
| Very sick | $1,908 | $257 | $2,165 |
| Extremely sick | $1,908 | $257 | $2,165 |
Total yearly cost by health status using the average cost of a plan for a 65-year-old-woman and deductible rates for 2025.
You could save between $771 and $1,271 per year if you need basic medical care and choose high deductible Plan G instead of regular Plan G. These savings, based on our medical estimates, are because of the cheap monthly rates of the high deductible plan.
But keep in mind that when you're healthy, you won't be getting any benefits from the plan because you'll only be using Original Medicare coverage.
With high deductible Medigap Plan G, the most you'll usually pay for medical care is the deductible, which is $2,870 in 2025. This means you'll have the coverage to protect you if you have an unexpected illness or injury.
This coverage is better than having Original Medicare alone, which doesn't cap how much you pay for medical care. And it's also better than most Medicare Advantage plans, which typically have an out-of-pocket maximum of between $5,000 and $6,000 per year.
When you're very sick, regular Plan G can save you as much as $1,293 per year compared to the high-deductible version of the plan. This savings is because Plan G will pay for nearly all of your medical bills.
Plan G can be expensive at an average of $159 per month or $1,908 per year. But the cost is worth it if you need lots of medical care.
With high deductible Plan G, your costs will change based on your medical needs until they're capped at $2,870. This means that you should only choose it if you have the savings to cover an unexpected medical bill, such as a $1,000 trip to the ER.
With regular Plan G, your costs are more predictable so you won't have to worry about the unexpected bills for an illness or injury.
High deductible Plan G is much less popular than regular Plan G. That's probably because of the complexity of having multiple deductibles. It's also more difficult to budget for medical bills because your costs will change based on how much medical care you need.
However, high deductible Plan G can help you save money if you're healthy. So it's worth considering if you're comfortable with having your medical costs change based on your health needs.
Can you switch from high deductible Plan G to another Medigap plan?
In most cases, if you buy high deductible Plan G at age 65, you'll usually keep it throughout your senior years.
That's because if you switch Medigap plans, your costs can be expensive because rates will be tied to your medical history. Insurance companies can also choose to deny your application to get a new policy.
Because of these risks, a good rule of thumb when comparing Medicare Supplement plans is to consider the coverage you need now and what you'll want if you get very sick.
- Some states make it easier to switch Medigap plans by having more rules about what insurance companies can consider when you apply. This gives you more freedom to change your coverage as your health needs change. For example, when it's easier to switch plans, you can choose to get high deductible Plan G at age 65 and change to regular Plan G at age 75.
- Physicians Mutual has a plan option that lets you get high deductible Plan G when you first sign up at 65 and then upgrade to regular Plan G three years later. This coverage flexibility makes it one of the best insurance companies for high deductible Plan G.
When is high deductible Plan G a good choice if you don't plan to switch in the future?
If you expect to be mostly healthy for about half of the next decade, high deductible Plan G can save you money overall versus regular Plan G.
For example, say you're healthy now and can save $1,000 per year with high deductible Plan G. This means you'd save $5,000 over five years. This savings would then offset the extra medical costs of about $1,000 per year when you need lots of expensive medical care.
High deductible Plan G vs. Medicare Advantage
High deductible Plan G is a great alternative to Medicare Advantage to get a better cap on your medical expenses.
You could save as much as $1,722 per year by choosing high deductible Plan G instead of Medicare Advantage, based on the sample plans we compared.
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Medicare Advantage plans can be a cheaper option when you're healthy, but you'll usually only save a few hundred dollars per year. This savings is often not worth it because in years when you need lots of medical care, you could have to pay thousands of dollars more for medical care when you have a Medicare Advantage plan.
Comparing costs based on your health needs
Annual cost comparison
Medicare Advantage
High deductible Plan G
Medical needs | Medicare Advantage | High deductible Plan G |
|---|---|---|
| Healthy | $680 | $894 |
| Typical health needs | $1,180 | $1,394 |
| Moderately sick | $2,580 | $2,794 |
| Very sick | $5,180 | $3,458 |
| Extremely sick | $5,180 | $3,458 |
Total yearly costs, including the cost of a typical plan and medical care.
Annual cost comparison
Medical needs | Medicare Advantage | High deductible Plan G |
|---|---|---|
| Healthy | $680 | $894 |
| Typical health needs | $1,180 | $1,394 |
| Moderately sick | $2,580 | $2,794 |
| Very sick | $5,180 | $3,458 |
| Extremely sick | $5,180 | $3,458 |
Total yearly costs, including the cost of a typical plan and medical care.
Medicare Advantage
Medical needs | Cost of Medicare Advantage plan | Medical costs | Total |
|---|---|---|---|
| Healthy | $180 | $500 | $680 |
| Typical health needs | $180 | $1,000 | $1,180 |
| Moderately sick | $180 | $2,400 | $2,580 |
| Very sick | $180 | $5,000 | $5,180 |
| Extremely sick | $180 | $5,000 | $5,180 |
Total yearly costs with a typical Medicare Advantage plan that costs $15 per month and has a $500 deductible, 20% coinsurance and $5,000 out-of-pocket maximum.
High deductible Plan G
Medical needs | Cost of high deductible Plan G | Medical costs | Total |
|---|---|---|---|
| Healthy | $588 | $306 | $894 |
| Typical health needs | $588 | $806 | $1,394 |
| Moderately sick | $588 | $2,206 | $2,794 |
| Very sick | $588 | $2,870 | $3,458 |
| Extremely sick | $588 | $2,870 | $3,458 |
Total yearly cost by health status using the average cost of a plan for a 65-year-old-woman and deductible rates for 2025.
When you need expensive health care, high deductible Plan G is usually better than Medicare Advantage at protecting you from high medical costs.
With the Medicare Advantage plan used in our example, you could save as much as $1,722 per year by choosing high deductible Plan G. That's because of the difference in the cap on your medical costs. However, how much you save will vary because Medicare Advantage plans have a wide range of coverage options.
- High deductible Plan G costs more than Medicare Advantage, but how much you pay for medical care usually won't be more than $2,870 per year.
- Medicare Advantage plans are usually cheap, but your medical costs can be high. The plan in our example has a $5,000 out-of-pocket maximum that caps how much you spend on medical care. This cap can be as high as $9,350 per year with some plans.
This means that high deductible Plan G could be a great solution if you're concerned about one of the main downsides of Medicare Advantage: that costs are expensive when you're sick.
High deductible Plan G's average cost of $49 per month is also an affordable upgrade from Medicare Advantage. Most people with Medicare Advantage are paying less than $15 per month for a plan. Regular Plan G's cost of about $159 per month could be too expensive.
Coverage with high deductible Plan G vs. Medicare Advantage
High deductible Plan G gives you better access to doctors than Medicare Advantage, but it won't usually include coverage extras.
Why high deductible Plan G is better
In contrast, Medicare Advantage plans have networks of doctors and hospitals that work with the insurance company.
With Medicare Advantage, claim approvals and denials are done by the insurance company. That means the company you choose could affect how likely your claims are to be denied.
Why high deductible Plan G is worse
The best Medicare Part D plans will usually cost between $0 and about $50 per month. And if you have a low income, you can get help paying for Part D through a program called Extra Help.
Keep in mind that you can't have a Medigap plan and a Medicare Advantage plan at the same time. You'll have to choose between Medicare Advantage and Medigap when you're first signing up for Medicare.
What's the best company for high deductible Plan G?
Physicians Mutual, New Era and Mutual of Omaha are the three best companies for high deductible Plan G Medicare Supplement plans.
Compare high deductible Plan G companies
Company | Monthly cost | ||
|---|---|---|---|
| New Era | $36 | |
| Bankers Fidelity | $41 | |
| Globe Life | $41 | |
| Washington National | $45 | |
| Mutual of Omaha | $47 | |
Average rates for a 65-year-old for companies selling high deductible Plan G in 20 states or more. Star ratings show the rate of customer complaints.
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New Era: Best and cheapest overall
Customer satisfaction
Pros and cons
Physicians Mutual: Best high deductible Plan G for switching coverage
Customer satisfaction
Pros and cons
Mutual of Omaha: Best high deductible Medigap if you want a large insurance company
Customer satisfaction
Pros and cons
Frequently asked questions
What is the deductible for high deductible Plan G?
In 2025, there is a $2,870 deductible that you must pay when you have high deductible Plan G. You'll have coverage from Original Medicare before you reach the deductible.
What are the pros and cons of high deductible Plan G?
High deductible Plan G is good because it can save you money when you need basic medical care, give you access to nearly any doctor and protect you from high costs when you need expensive treatment. The downside of high deductible Plan G is that it's not always the best deal, and you'll have to buy a separate Part D plan for prescription drug coverage.
Methodology and sources
Average rates are for a 65-year-old nonsmoking woman, unless otherwise specified. Rates use actuarial data for 2025 plans during the initial enrollment period where medical history doesn't affect rates. Rates also don't consider household discounts or other savings options. Your quotes may be different.
Companies that offer high deductible Medigap Plan G in at least 20 states are included in the company comparison. The best companies are selected based on a combination of cost, coverage and unique benefits.
Customer satisfaction ratings are on a one-to-five score based on the National Association of Insurance Commissioners’ (NAIC) complaint index for each company's Medicare Supplement product. Higher scores mean better customer service and fewer complaints.
Satisfaction score | Customer complaints adjusted for company size |
|---|---|
| 5.0 (top rating) | Over 75% fewer complaints than typical |
| 4.5 | 50% to 75% fewer complaints than typical |
| 4.0 | 25% to 50% fewer complaints than typical |
| 3.5 | 0% to 25% fewer complaints than typical |
| 3.0 | An average rate of complaints |
| 2.5 | 0% to 50% more complaints than typical |
| 2.0 | 50% to 100% more complaints than typical |
| 1.5 | 100% to 250% more complaints than typical |
| 1.0 | Over 250% more complaints than typical |
The sample Medicare Advantage plan used in our comparison costs $15 per month and has a $500 deductible, 20% coinsurance and $5,000 out-of-pocket maximum.
Estimates of sample levels of medical bills were used to show how costs can change based on the amount of health care you need.
Health status | Total yearly doctor bills, before any insurance |
|---|---|
| Healthy | Few medical needs, estimated at $500 per year |
| Typical health needs | Estimated at $3,000 in doctor bills |
| Moderately sick | Estimated at $10,000 in doctor bills |
| Very sick | Estimated at $200,000 in doctor bills |
| Extremely sick | Estimated at $1 million in doctor bills |
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