High Deductible Medicare Supplement Plans

Benefits of Medicare Supplement Insurance

Medigap plans, including high-deductible plans, offer several benefits to Medicare beneficiaries. These plans help fill the gaps in Original Medicare coverage, reducing or limiting out-of-pocket costs and providing financial protection against unexpected medical expenses. Medigap Plan G, for example, covers Part B excess charges, hospital stays, and skilled nursing care, among other benefits. Additionally, Medigap plan benefits are standardized, meaning that the same plan from different insurance companies will offer the same minimum benefits. This standardization ensures that you receive consistent coverage regardless of the insurer, making it easier to compare plans and choose the one that best fits your needs.

Original Medicare Part B and Medicare Part A Benefits

It is the objective of Original Medicare to cover everything medically necessary to diagnose and treat all diseases, conditions or injuries. Original Medicare benefits are improved with a Medigap plan because the Medigap plan pays all or some of the deductibles, copays and coinsurance that Original Medicare leaves as the Medicare beneficiaries’ obligation.

In other words, a Medigap plan does not increase the quantity of benefits offered by Medicare, it improves the depth of health insurance coverage. The high deductible Medigap Plan G, for example, sets a maximum limit to the consumer’s out of pocket costs. This includes the annual deductible, the Part B coinsurance and Medicare Part A copays.

Eligibility Requirements for Medicare Plan G

To be eligible for Medicare Supplement Insurance, including high-deductible Plan G, individuals must be enrolled in Original Medicare (Part A and Part B). Medicare beneficiaries under age 65 who are eligible for Medicare Advantage plans may not be eligible for Medigap plans, depending on state laws. It’s essential to consult with a licensed insurance agent to determine which Medicare plans are available to you.

What Is a High-Deductible Medicare Supplement Plan? 

There are two Medicare supplement plans that also have a high deductible option; Medicare supplement Plan G and Plan F. The high deductible version is the same Medigap plan, the same benefits, but a higher annual deductible must be paid by the Medicare beneficiary before the Medigap plan starts to pay benefits.

A deductible is an amount of money you must spend before your insurance pays benefits. With a Medicare supplement plan, you would need to spend that deductible on Medicare covered services. Spending on Medicare approved services does not include insurance premiums bur does include any Medicare bills, the Medicare Part B deductible and the Medicare Part A deductible.

It’s important to understand that this deductible for your high deductible Plan G-HD or Plan F-HD is on your Medicare supplement, not on your Medicare. Medicare still pays first. Once your out of pocket costs reach the annual deductible, all Medicare costs, except insurance premiums, are fully covered for the rest of the calendar year.

For example: with Medicare you have a $283 annual Part B deductible for 2026 that you would pay before your Medicare Part B pays you a benefit. Once you have satisfied that annual Part B deductible, Medicare Part B will pay 80% of your outpatient services, you pay 20%. When you have a regular Medicare supplement Plan G or Plan F, your supplement will pay that 20% for you. With high deductible Medicare supplement plans you will pay that 20% until all your Medicare bills add up to the deductible. Then your supplement will pay its benefits and cover that 20% for you.

In addition, the annual deductible for High Deductible version of Plan G is $2,950 in 2026. The benefits of the high deductible plan will not begin until the insured has paid this deductible amount.

The High deductible plan G allows beneficiaries to benefit from lower premiums while still receiving comprehensive coverage once the deductible is satisfied. The difference between standard and high deductible plans is that while both cover the same benefits, the timing of when these benefits take effect is different. The high deductible versions are part of the standardized Medigap plans.

How High Deductible Plans Work

High deductible plans work by requiring the beneficiary to pay a certain amount out of pocket before the plan begins to pay for covered services. For example, the annual deductible for High Deductible Plan G is $2,950 in 2026. This means that the beneficiary must pay the first $2,950 of out-of-pocket expenses before the plan will start to pay for approved services. After the deductible is met, the plan pays the same benefits as the standard plan, including Medicare Part B coinsurance and hospital stays. This structure allows beneficiaries to benefit from lower premiums while still receiving comprehensive coverage once the deductible is satisfied and enjoy a set annual maximum out of pocket limit to their financial risk.

How Much Is the High Deductible? 

For 2026 the deductible for the high deductible options of Plan G and Plan F is $2,950. This is a calendar deductible. It resets every January 01. The high deductible amount for these plans is fixed at $2,950 for 2026, and this amount must be met before coverage begins.

This deductible for the high deductible Plan G and Plan F is also not fixed. It can change each year along with inflation. The deductible is linked to the CPI-U (Consumer Price Index for all urban households). If the CPI-U increases by 5%, your deductible will increase by 5%.

Understanding High Deductible Version of Medicare Supplement Plans

The easiest way to understand the high deductible Medicare supplement plans is to stop thinking of them as a high deductible. Instead view them as an higher annual maximum out-of-pocket options.

Take a look at the 2026 Medigap Benefits Table. You will notice that the benefits of Medicare supplement Plan G and Plan F are very similar. Medigap Plan F pays 100% of your inpatient and outpatient Medicare expenses, leaving you with zero out-of-pocket.

Plan G pays 100% of your inpatient and outpatient Medicare expenses except for the annual Medicare Part B deductible (just $283 for 2026).

With either plan, you can easily reach a level of expenditures where the supplement plan will provide you 100% insurance coverage.

Now look at the benefits of Medicare Part A and Part B below. When you have a high deductible Medicare supplement plan, these are your benefits until you reach the Medigap deductible. Once you reach the Medigap deductible, out-of-pocket Medicare expenses for the calendar yearare covered at 100% by a combination of Original Medicare and your supplement. Reminder, this does not include your insurance premiums for either Part B, Part D or your Medicare supplement.

From the benefit table we can see that both plans would pay 100% coverage. So, this is the important part, your maximum annual out-of-pocket financial risk is equal to the $2,950 Medicare supplement deductible. Think of the Medigap Plan G high deductible amount as your maximum out of pocket for the calendar year.

In other words, these plans offer a fixed maximum out-of-pocket limit equal to the supplement deductible. That number will change every year with inflation. But it puts a cap on your financial risk that Original Medicare does not have.

I suggest keeping the Medicare Part A and B literature so you know exactly what your insurance benefits will be prior to meeting your deductible. It is also important to contact local State Health Insurance Assistance Programs (SHIP) for assistance with enrollment and understanding the available options.