By Tyler Haskell, CFP®

If you’ve started looking at Medicare Supplement plans in Utah, you’ve might have heard about High Deductible Plan G.

For many people, the words “high deductible” immediately sound negative or too much risk.

But here’s what surprises most of my clients…

High Deductible Plan G is not like a high deductible health plan you may have had through an employer or individual marketplace.

In fact, for the right person, it can be one of the best values available in Medicare.

Let’s look at how it actually works.

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What Is High Deductible Plan G?

High Deductible Plan G is a Medicare Supplement (Medigap) policy that works alongside Original Medicare.

It provides the exact same benefits as a regular Plan G, but you first pay Medicare-covered deductibles, copays, and coinsurance until you reach the annual deductible. After that, the plan pays just like a standard Plan G for the rest of the year.

The biggest difference is the premium.

Because you’re taking on more of the initial cost, the monthly premium is usually much lower.

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How Does the Deductible Work?

For 2026, the High Deductible Plan G deductible is $2,950.

That means you pay original Medicare-deductibles, copays, and coinsurance until your total out-of-pocket reaches $2,950.

After you’ve reached that amount:

• Medicare continues to pay its share.
• Your High Deductible Plan G pays the rest—just like a standard Plan G—for the remainder of the calendar year.

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A Simple Example

Let’s say you have surgery.

With Original Medicare alone, you owe your share of the Medicare-approved costs.

With High Deductible Plan G:

• You pay those Medicare cost-sharing amounts until you’ve reached the $2,950 deductible.
• Once you’ve reached it, the supplement picks up the rest of any medicare approved medical cost for the rest of the year.

No additional deductibles.

No ongoing 20% coinsurance for Medicare-covered services.

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Why Some People Love It

The biggest advantage is simple:

Lower monthly premiums.

Instead of paying a much higher premium every month, some people would rather:

• Save money each month.
• Keep those savings invested or in a savings account.
• Pay out of pocket only if they actually have significant medical expenses.

For healthy retirees, this can work out very well.

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Think of It Like Auto Insurance

I often explain it this way.

Would you rather:

Option A

• Pay a much higher insurance premium every month…

or

Option B

• Pay a lower premium and accept a defined amount of risk if something happens?

That’s really what High Deductible Plan G is.

You’re simply choosing to self-insure the first portion of your Medicare-covered expenses in exchange for a lower monthly premium.

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Who Is High Deductible Plan G Best For?

In my experience, it tends to work well for people who:

• Are relatively healthy.
• Want the freedom to see any doctor who accepts Medicare.
• Travel throughout the United States.
• Want protection against catastrophic Medicare costs.
• Prefer lower monthly premiums.

It may also appeal to people who have enough savings to comfortably cover the deductible if they ever need to.

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Is High Deductible Plan G Right for Everyone?

No.

Some people simply prefer knowing that almost all of their Medicare-covered expenses will be paid after the Part B deductible with a standard Plan G.

There’s nothing wrong with that.

Others would rather pay a lower premium and take on a little more risk.

Neither option is “better.”

It’s simply a matter of which approach fits your budget, health, and comfort level.

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My Advice

One thing I tell every client is this:

Don’t compare premiums alone.

Compare your total potential annual cost.

Sometimes a standard Plan G is the better value.

Sometimes High Deductible Plan G is.

It depends on your health, your budget, and how much risk you’re comfortable taking.

That’s why I compare both options with every client before making a recommendation.

Bonus: Your First $2,950 Isn’t What Most People Think

One thing that surprises almost everyone is that you don’t pay the full cost of your medical care until you reach the deductible.

Remember, Original Medicare is still paying first.

Here’s how it works:

Original Medicare generally pays 80% of the Medicare-approved amount for covered Part B services after you’ve met the Part B deductible.

High Deductible Plan G simply asks you to pay the remaining Medicare-approved deductibles, copays, and coinsurance until you’ve reached the annual deductible.

That’s an important distinction.

For example, if you have a doctor visit and the Medicare-approved amount is $150, Original Medicare typically pays about $120, leaving you responsible for about $30.

You aren’t paying the entire $150.

The same concept applies to many outpatient services. Because Medicare has negotiated pricing with providers, the amount you’re responsible for is often much lower than people expect.

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Medicare’s Approved Prices Are Usually Very Reasonable

Another thing I like to point out is that Medicare-approved pricing is generally much lower than the retail price of medical services.

For example:

• A primary care visit may leave you with only $20–40 in coinsurance.
• A specialist visit may cost $30–60.
• Many lab tests have very little or no out-of-pocket cost.
• Even expensive imaging or outpatient procedures often result in much smaller patient responsibility than people expect because Medicare has already negotiated the allowed amount.

Most people imagine they’re paying the hospital’s full bill.

That’s simply not how Medicare works.  You can search for Medicare Approved Pricing procedures here

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That’s Why Many People Never Reach the Deductible

This is something I always explain during appointments.

People often hear the words “High Deductible Plan G” and immediately think they’ll be paying $2,950 every year.

In reality, many healthy Medicare beneficiaries never come close.

They may spend a few hundred dollars during the year because Original Medicare is paying its share first, and their remaining Medicare-approved coinsurance simply doesn’t add up to the full deductible.

Of course, if you have a major hospitalization, surgery, or extensive outpatient treatment, you could reach the deductible. But for many people, it’s there as protection against a worst-case year—not as an amount they automatically spend.

“Think of the $2,950 deductible as your worst-case exposure for Medicare-covered cost sharing—not what you’ll necessarily spend every year.”

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Frequently Asked Questions

Does High Deductible Plan G let me see any doctor?

Yes. Just like a standard Plan G, you can see any provider in the U.S. that accepts Medicare patients.

Does it cover Medicare excess charges?

Yes. After you’ve met the annual deductible, it covers Medicare Part B excess charges just like a standard Plan G.

Is there a maximum amount I could pay for Medicare-covered services?

For 2026, your Medicare-covered cost-sharing is capped by the $2,950 High Deductible Plan G deductible, after which the plan functions like a standard Plan G. This does not include your monthly premiums, prescription drug costs, or services Medicare doesn’t cover.

If you want to see if High Deductible Plan G could be a good fit for you, let’s talk about it!