My Medigap High-Deductible Plan G Analysis

In case this is useful to others...

I ran the numbers on switching to Medigap High-Deductible G (HD-G) for 2026, assuming the HD-G deductible will increase to $3,000. The numbers would vary by age and ZIP code, but here's a way to run the math:

1. Premiums for my available Plans

• Plan G: $250/month
• HD-G: $50/month

2. Maximum Savings (Best Case Scenario)

If I have a healthy year and don’t need care beyond what Medicare Part B already covers at no cost:

• Plan G annual premium: $250 × 12 = $3,000
• HD-G annual premium: $50 × 12 = $600
• Savings = $2,400/year

This is my “very healthy year” scenario.

3. Maximum Extra Cost (Worst Case Scenario)

If I have a major medical year and hit the full HD-G deductible:

• Out-of-pocket under HD-G = $3,000
• Minus the $2,400 in premium savings
• Net worst-case cost = $600 more than if I’d had Plan G

So the most I can lose relative to Plan G is $600/year.

4. Net Risk

This is what makes HD-G attractive to me:

• One healthy year (+$2,400)
• Pays for up to four worst-case years (–$600 each)

I obviously can't predict my future medical needs, but on average my my net cost will fall somewhere between +$2,400 and –$600.

With two people in our household:

• Max savings: $4,800/year
• Max risk: $1,200/year

The odds of both of us consistently having worst-case years feels pretty low, so that’s a very asymmetric risk profile where the upside heavily outweighs the downside.

5. How HD-G actually works

Many people misunderstand how the HD-G deductible actually works:

• After you meet the Part B deductible, Medicare starts paying 80%, just like it normally does.
• Because you're only paying 20%, you don't actually hit the HD deductible until and unless you require roughly $13,000 in total Medicare-approved charges for your annual medical care.

One way to look at it:

• The HD-G “deductible” is actually a maximum out-of-pocket (MOOP) for Part A + B services.

Another way to look at it:

• HD-G = You have Original Medicare (A + B) and your premium buys you a $3,000 MOOP
• Plan G = Same coverage but your higher premium buys you a lower MOOP, equal to the Part B deductible

(Plan N is somewhere in between, but there is no MOOP because you’re exposed to potentially unlimited copays and any excess charges.)

6. Bottom Line

For me — with a $200/month premium difference — HD-G is a no-brainer.