High Deductible Plan F & Plan G – Budget Medigap Options

  What Is High Deductible Plan F & Plan G?

High Deductible Plan F and Plan G are Medigap (Medicare Supplement) policies that work the same way as standard Plan F and Plan G—but with one big difference:

    They come with a high annual deductible.

  • For 2025, the deductible is $2,870.

  • That means the plan won’t pay anything until you’ve paid $2,870 out of pocket for Medicare-approved costs.

  • Once that’s met, the plan pays 100%, just like regular Plan F or G.

  • No networks. See any doctor that accepts Medicare.

 

Why Choose a High Deductible Plan?

This is a very budget-friendly option:

  • Monthly premiums are often 1/3 the cost of a regular Plan G or Plan F.

  • Great for people who are:

    • Healthy

    • Only seeing their doctor once or twice a year

    • Looking to lower monthly costs but still want Medigap-style coverage

Example Comparison:

Plan Type Monthly Premium Annual Deductible
Regular Plan G ~$150/month $257 (Part B)
High Deductible G ~$50/month $2,870

A healthy person may save hundreds per year by going with the high-deductible version.

 

But There’s a Catch…

If the client has a major health event—like:

  • Cancer

  • Stroke

  • Hospitalization

They will need to pay the full $2,870 before coverage kicks in.

For some, that’s manageable. But for others, it may be better to consider a Medicare Advantage (MA) plan.

High Deductible Medigap vs. Medicare Advantage

Feature High Deductible Plan G/F Medicare Advantage
Premium Low (~$40–$60) $0 or very low
Drug coverage ❌ Not included ✅ Included
Dental, vision, hearing ❌ Not included ✅ Included
Out-of-pocket limit $2,870 deductible ~$3,500–$7,550 max
Doctor flexibility ✅ Any Medicare provider ⚠️ Network restrictions

Medicare Advantage often offers more benefits and lower up-front costs, making it a better fit for many budget-conscious clients.

Bottom Line

  • High Deductible Plan F/G is a great option for healthy clients who want Medigap-style flexibility at a lower price.

  • However, in most cases, a Medicare Advantage plan offers more value with additional benefits and no monthly premium.

  • Always evaluate the client’s:

    • Health status

    • Budget

    • Provider preferences

    • Comfort with out-of-pocket risk

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