Are High Deductible Medicare Supplement Plans Right for You?

09.22.2025 | Category: Medicare

Senior couples discuss insurance at home while using laptops. Summary: High deductible Medicare supplement plans offer lower premiums in exchange for greater out-of-pocket responsibility if you need care. Understand the trade-offs to decide whether this type of plan fits your health needs, budget, and risk comfort.

As you approach retirement or consider switching plans, you may be exploring ways to lower your Medicare costs. One option you may come across is a high deductible Medicare supplement insurance plan. But is it the right fit for your healthcare needs and budget? Let’s break it down in a way that makes sense and helps you make an informed decision.

What is a Medicare supplement high deductible plan?

First, let’s start with the basics. Original Medicare (Part A and Part B) covers many healthcare services, but it doesn’t cover everything. Medicare supplement plans (also known as Medigap plans) help cover the out-of-pocket costs that Original Medicare doesn’t, like deductibles, copayments and coinsurance.

A Medicare supplement high deductible plan offers a lower monthly premium than standard plans, which means you pay less each month, but you’ll need to pay more out-of-pocket before your coverage kicks in. Currently, there are only two high deductible Medicare supplement options available: high deductible Plan F and high deductible Plan G. However, high deductible Plan F is only available to people who became eligible for Medicare before January 1, 2020. If you’re new to Medicare, high deductible Plan G is your only high deductible option. (In Minnesota and Wisconsin, a high deductible plan is also available. Medicare supplement insurance plans in Minnesota and Wisconsin are standardized in a different way).

Benefits of high deductible Medicare supplement plans

Here are some of the benefits of a high deductible Medicare supplement plan.

1. Lower monthly premiums

This plan is beneficial in saving money each month for those who are healthy and don’t have high out-of-pocket health costs. The lower premium can help you keep your monthly Medicare costs down and allow you to put that money toward other things.

2. Broad coverage after you meet the deductible

Plan F and Plan G are the Medicare supplement plans that offer the broadest benefits. The high deductible versions provide the same level of coverage once the deductible is met, helping to cover almost all of the out-of-pocket costs Original Medicare doesn’t fully cover. This includes expenses like hospital stays, doctor visits and lab work. After the deductible is met, the plan can help take care of out-of-pocket costs for major medical expenses.

3. Ideal for those in good health

This plan might be a good fit for people who don’t expect many doctor visits or health issues. The lower monthly premium allows you to take advantage of reliable coverage when you need it.

4. Peace of mind with high coverage

Once the deductible is met, this plan offers broad coverage for most healthcare services. It’s a good safety net in case of the unexpected development of a serious or chronic health condition.

Benefits of Medicare supplement high deductible Plan G

A Medicare supplement high deductible Plan G could be a great option to save on premiums. Once the deductible is met, this plan offers the same benefits as the standard Medicare supplement Plan G. This plan is suitable for people who don’t require regular medical care, or those who prefer to pay lower monthly premiums and are comfortable with higher out-of-pocket costs when care is needed.

Drawbacks of Medicare supplement high deductible plans

While there are plenty of benefits, there are also some things to keep in mind when considering a high deductible plan.

1. Higher deductible

The main downside is the higher deductible. You’ll pay more upfront before your coverage kicks in. If you have frequent medical needs or expect regular doctor visits, you could end up paying more out-of-pocket than you would with a plan that has no deductible.

2. Unpredictable costs

If you’re not sure how often you’ll need medical care, a high deductible plan can make budgeting a little tricky. The deductible means you’ll have to pay more before you see the benefits, and if you don’t meet it, you may end up covering more costs on your own.

3. Not ideal for frequent medical visits

If you have ongoing health issues or anticipate needing regular care, this plan may not be the best fit. You’ll likely end up paying more out-of-pocket before your plan starts to help cover costs.

Who should consider a Medicare supplement high deductible plan?

A Medicare supplement high deductible plan can work for many people, but certain groups may find it more beneficial.

If you’re new to Medicare:

Generally healthy individuals: If you’re healthy and don’t have high health costs, this plan could save you money on monthly premiums.
Those with an emergency fund or health savings account: If you have savings set aside to cover the higher deductible if needed, the plan’s savings could work in your favor.
Those looking to save on premiums: If keeping your monthly premium low is a priority, this plan may be a good fit as long as you’re comfortable with the higher deductible.

If you’re already on Medicare and thinking about switching plans:*

Facing rising premiums: If your current plan is becoming too expensive, a high deductible Medicare supplement plan could offer you a lower monthly premium.
Dissatisfied with your current coverage: If your current plan doesn’t meet your needs, this plan could be an affordable option, especially if you have few medical needs.

Is a high deductible plan right for you?

Choosing the right plan can feel overwhelming, but here’s a simple way to figure out if a high deductible Medicare supplement plan is a good fit.

Ask yourself these questions:

How often do you receive medical care?
If you don’t need frequent care, a high deductible plan might be a great way to save on premiums. Remember, your only options are high deductible Plan F (if you were eligible for Medicare before January 1, 2020) or high deductible Plan G. (In Minnesota and Wisconsin, a high deductible plan is also available).

Can you afford to cover the deductible?
Consider whether you can pay the higher deductible ($2,870 for 2025) if an unexpected medical issue arises. If you can, this plan might work for you.

Are you comfortable with budgeting uncertainty?
High deductible plans can make it harder to predict your annual healthcare costs, especially if you’re unsure how often you’ll need medical care.

By answering these questions and considering your health and financial situation, you can decide whether a high deductible Medicare supplement plan is right for you.

Find the right Medicare supplement plan for you

Choosing the right Medicare supplement plan doesn’t have to be difficult. If you’re looking for help finding the right plan, be sure to check out some online resources before you get started, such as: 

Frequently asked questions

Which Medicare supplement plans offer high deductible options?

Only two Medicare supplement plans offer high deductible versions: Plan F and Plan G. However, high deductible Plan F is only available to people who became eligible for Medicare before January 1, 2020. If you’re new to Medicare, high deductible Plan G is your only high deductible option. Both plans provide comprehensive coverage once you meet the annual deductible of $2,870 in 2025. (In Minnesota and Wisconsin, a high deductible Medicare supplement plan is also available).

How much higher is the deductible for a high deductible plan?

The deductible for high deductible plans is $2,870 in 2025. Standard Medicare supplement plans don’t have a plan deductible. However, premiums are lower for high deductible plans.

Can I switch to a standard plan from a high deductible Medicare supplement plan?

Yes, you can apply to switch from a high deductible Medicare supplement plan to a standard plan at any time. However, you may need to undergo medical underwriting and may not be approved for the plan. There are some situations where you may be able to switch plans without underwriting:

If you’re within your Medicare Supplement Open Enrollment Period (the first 6 months after enrolling in Medicare Part B at age 65), insurers must accept your application regardless of health.
You may qualify for a guaranteed issue right or special enrollment protection in limited circumstances, such as your insurer leaving the market. In addition, some states have a “birthday rule” which gives you guaranteed issue rights each year around your birthday. Rules vary by state.

*Underwriting is typically required and your application for coverage could be denied or rated.