Rising Costs of Medicare Supplement Plans: Comparing Plan G and High Deductible Plan G

Medicare Supplement Plan G vs. High Deductible Plan G — see how rising premiums are affecting seniors in 2025 and compare real costs in average and high-usage years.

Why the Rising Costs Matter

If you’ve been on Medicare for a few years, you’ve probably noticed your Medicare Supplement (Medigap) premiums rising steadily. In fact, many seniors are experiencing double-digit increases in 2025, and that trend is expected to continue in the years ahead.

For retirees living on a fixed income, these increases can feel overwhelming. That’s why it’s important to step back and ask:

  • Am I still in the right Medicare Supplement plan?
  • Is there another option that gives me the coverage I want at a lower cost?

The most common comparison is between Traditional Plan G — one of the most popular Medigap plans — and High Deductible Plan G, which offers the same benefits but with a very different cost structure

Plan G vs. High Deductible Plan G at a Glance

Here’s a side-by-side look at the two options (based on 2025 New York rates):

Basic Plan Comparison

Category Traditional Plan G High Deductible Plan G
Monthly Premiume $326 $72
Annual Premium $3,912 $864
Deductible (2025) $0 $2,800

Medicare Copays

Service Traditional Plan G Copays High Deductible Plan G Copays
Part A Hospital Coverage $0 $1,676
Part B Medical Coverage $0 20%
Medicare Part B Deductible $257 $257
Primary Care Visit $0 $9
Specialist Visit $0 $13
MRI (Outpatient) $0 $100
CT Scan $0 $30
X-Ray $0 $15
Blood Work $0 $0

Average Health Year

Service Traditional Plan G Copays High Deductible Plan G Copays
2 Primary Care Visits $0 $18
4 Specialist Visits $0 $52
1 MRIs $257 $100
Total Medical Costs $0 $170
Plan Premium $3,912 $864
Total Annual Cost $3,912 $1,034

Health Issues Year

Service Traditional Plan G Copays High Deductible Plan G Copays
4 Primary Care Visits $0 $36
10 Specialist Visits $0 $130
2 MRIs $0 $200
1 CT Scan $0 $30
1 Hospital Stay $0 $1,676
Total Medical Costs $0 $2,072
Plan Premium $3,912 $864
Total Annual Cost $3,912 $2,936

Two Real-World Scenarios

Average Health Year

  • 2 primary care visits
  • 4 specialist visits
  • 1 MRI

Annual Costs:

  • Plan G: $3,912 (all premium, no copays)
  • High Deductible G: $1,034 (premium + copays)

Savings with High Deductible G: $2,878

Health Issues Year

  • 4 primary care visits
  • 10 specialist visits
  • 2 MRIs
  • 1 CT scan
  • 1 hospital stay

Annual Costs:

  • Plan G: $3,912 (all premium, no copays)
  • High Deductible G: $2,936 (premium + copays, including hospital deductible)

Savings with High Deductible G: $976

What This Means for You

  • Plan G offers simplicity — higher premiums, but virtually no additional costs when you use your coverage. For frequent doctor visits or health issues, this plan delivers peace of mind.
  • High Deductible Plan G offers affordability — much lower monthly premiums, but you take on more out-of-pocket risk if your health changes. For people who use their insurance less, the savings can be significant.

Questions to Ask Yourself

Before switching plans, consider:

  • How often do I use my coverage now
  • Would I rather pay a higher monthly premium for peace of mind, or save each month and risk higher out-of-pocket costs later
  • Am I comfortable handling a deductible if I had a hospital stay or major procedure?

Bottom Line

The rising cost of Medicare Supplement plans has many seniors rethinking their options. By comparing Plan G with High Deductible Plan G, you can see how the math works out in both “average health” and “health issues” years.

The best choice depends on your health, your budget, and your comfort with risk. But one thing is clear: reviewing your options regularly is the best way to make sure your Medicare coverage still works for you.

Need Help Comparing Plans?

If you’d like a personalized breakdown of your Medicare costs — including whether Plan G, High Deductible Plan G, or another option is best for you — I’d be happy to walk you through it.

Michael M Insurance Services

445 Broadhollow Rd. Suite 25, Melville, NY 11747

(Mail: PO Box 465, Brightwaters, NY 11718)

📞 Phone: 631-774-3786

📧 Email: mmilinsurance@gmail.com

🌐 Website: mymedicaremike.com

Choosing the Right Medicare Coverage

Selecting the best Medicare coverage depends on factors like your healthcare needs, budget, and preferred providers. You can choose between:
  • Original Medicare (Parts A & B): Allows you to see any doctor or
    hospital that accepts Medicare but does not include prescription drug
    coverage (Part D) or additional benefits.
  • Medicare Advantage (Part C): Offers bundled coverage with
    potential extra benefits but may require using a network of providers.
  • Medigap (Medicare Supplement Insurance): Helps cover
    out-of-pocket costs not covered by Original Medicare, such as
    copayments and deductibles.

Key Medicare Enrollment Periods

It is crucial to enroll in Medicare at the right time to avoid penalties and ensure continuous coverage:
  • Initial Enrollment Period (IEP): A seven-month window starting
    three months before your 65th birthday month.
  • General Enrollment Period (GEP): From January 1 to March 31
    each year for those who missed their IEP.
  • Annual Election Period (AEP): From October 15 to December 7,
    allowing you to switch or enroll in Medicare Advantage and Part D
    plans.
  • Open Enrollment Period(OEP): From January 1 to March 31 for
    those who missed AEP and want to make certain changes.
  • Special Enrollment Period(SEP): Can be used anytime during the
    calendar year for those that meet certain criteria such as moving to a
    new service area.

Finding Help with Medicare

Understanding Medicare can be complex, but you don’t have to do it alone. Licensed Insurance Brokers, Medicare.gov, and state health assistance programs can provide guidance tailored to your specific needs.
By taking the time to explore your Medicare options, you can make informed decisions that ensure you receive the healthcare coverage that best suits your lifestyle and budget.
Do I have to sign up for Medicare?
It depends upon your current coverage. If you are employed and your employer has over 20 employees then you can delay signing up for Medicare and avoid penalties.
No, You will have to enroll in a stand alone Part D plan or a Medicare Advantage Plan(Part C) to get coverage.
There are no networks with Medicare and most doctors and hospitals accept it. However, Medicare does not cover 100% of services so a Medicare Supplement or Medicare Advantage plans is advisable.

Mike Miligi- Owner

For over 10 years, Mike has been assisting Seniors and other Medicare-eligible individuals in understanding the ins and outs of Medicare and Medicare Health Insurance options, including Medicare Advantage Plans(Part C), Medicare Supplement Plans(Medigap), Prescription Drug Plans(PartD), and Dental and Vision programs.
Mike is Licensed in seven States and Certified with 11 Insurance Carriers. He has helped thousands of individuals decide on the best course of action for their particular Health Insurance needs. Because Mike is an Independent Medicare Health Insurance Broker, he works for the client, not the Insurance Carriers, and is able to provide his clients with accurate and unbiased Health Insurance options.
Mike recertifies with CMS(The Centers for Medicare and Medicaid Services) annually, regularly completes Continuing Education Courses required by individual State Insurance Departments, and keeps abreast of industry trends and standards to offer his clients the most up-to-date information.
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