Medicare Supplement High-Deductible Plan G In Texas

Is High-Deductible Plan G a smart way to save on Medicare coverage in Texas?

For many healthy retirees, the answer is yes - especially if you're comfortable covering some upfront costs in exchange for much lower monthly premiums.

High-Deductible Plan G (often called HDG or HD Plan G) offers the same benefits as standard Plan G after you meet a yearly deductible. In 2025, that deductible is $2,870.

Until you hit that amount in out-of-pocket Medicare-approved expenses, you’re responsible for paying costs that a regular Plan G would normally cover.

So why choose it?

Because for people who don’t visit the doctor often or who are just looking to protect themselves from major medical events - HDG can provide real savings.

In Texas, monthly premiums for High-Deductible Plan G often fall between $35 and $70, depending on your ZIP code, age, and insurance company.

How High-Deductible Plan G Works

High-Deductible Plan G (HDG) offers the same benefits as regular Plan G - but only after you meet a larger deductible each year.

It’s a simple trade-off: you pay more upfront if you need care, but much less in monthly premiums.

What You Pay Before the Deductible Is Met

In 2025, the annual deductible is $2,870.

That means you’re responsible for all Medicare-approved costs - including Part A and Part B deductibles, coinsurance, and copays - until you hit that $2,870 mark.

This includes things like hospital stays, outpatient surgeries, specialist visits, lab work, and more.

What Happens After the Deductible?

Once you’ve spent $2,870 out of pocket on Medicare-approved expenses, your High-Deductible Plan G kicks in at 100%.

From that point forward, the plan covers all additional Medicare Part A and Part B costs for the rest of the year - just like standard Plan G.

Does the Deductible Reset?

Yes. The deductible resets every year on January 1, so your out-of-pocket maximum starts over annually - just like with most health insurance plans.

Top High-Deductible Plan G Companies in Texas (2025)

High-Deductible Plan G is available from several major insurers in Texas, but a few stand out for their competitive premiums, dependable service, and ease of enrollment.

Here's a look at the top providers we most often recommend to our Texas clients:

High-Deductible Plan G vs. Standard Plan G

When comparing High-Deductible Plan G (HDG) to standard Plan G, the biggest difference is not just in price - it’s in how each plan shapes your experience navigating the healthcare system.

These two plans offer identical benefits after you’ve paid the deductible, but they create very different expectations when it comes to budgeting, risk tolerance, and peace of mind.

How It Affects Your Healthcare Life

Standard Plan G is for people who don’t want to think twice about medical costs.

Once you’ve paid your small annual Part B deductible ($257 in 2025), nearly everything else is fully covered:

• Hospital stays? Covered.
  
• Doctor visits? Covered.
  
• Specialists, labs, outpatient surgeries? Covered.
  
• Even doctors who charge more than Medicare allows? Also covered.
  

You walk into an appointment, and walk out without surprise bills.

That simplicity is why Plan G is so popular in Texas - especially for people who visit the doctor regularly or want predictability.

High-Deductible Plan G, by contrast, requires a bit more awareness and planning. Until you’ve paid $2,870 in covered Medicare costs, you’re responsible for your own bills - including:

• The Part A hospital deductible ($1,676 in 2025)
  
• The 20% coinsurance under Part B
  
• Any outpatient surgery, imaging, or follow-up care
  
• Skilled nursing, blood transfusions, ambulance rides - all out of pocket until the deductible is met
  

But after that deductible? HDG becomes just as powerful as standard Plan G.

Everything covered by Medicare is now paid 100%, giving you full protection for the rest of the year.

Key Differences in Real-World Experience

Thinking Long-Term

If you’re healthy and only see the doctor once or twice a year, HDG could cut your premiums in half - freeing up $800–$1,200 a year in your retirement budget.

But if you see specialists, manage chronic conditions, or simply want the security of walking into appointments without cost concerns, standard Plan G provides that financial and emotional peace of mind right from the start.

Bottom Line

Standard Plan G simplifies your healthcare life - it's the plan you “set and forget,” knowing your bases are covered no matter what happens.

High-Deductible Plan G puts you in the driver’s seat financially. You take on more risk early in the year in exchange for lower premiums - and once you reach the deductible, you’re fully protected.

Both Medigap plans offer excellent coverage, but your choice should reflect your comfort with medical costs, your usage history, and how much peace of mind matters to you.

High-Deductible Plan G vs. Plan N

When choosing between High-Deductible Plan G (HDG) and Plan N, the real question becomes: How much do you want to pay each month - and how much are you comfortable paying if something goes wrong?

Both plans aim to keep premiums affordable, but they take very different approaches in how costs are shared.

What Is Plan N?

Plan N is a popular Medigap choice for healthy individuals who want moderate monthly premiums while still getting strong protection against major medical bills.

Here’s how it works:

• Doctor visit copay: Up to $20 per visit
  
• ER visit copay: Up to $50 (waived if admitted)
  
• Part B excess charges: Not covered - if a provider bills more than Medicare allows, you may pay the difference (though this is rare in Texas)
  
• Everything else: Covered after your small Part B deductible ($257 in 2025)
  

It’s a “pay-as-you-go” strategy - but with guardrails to protect you from catastrophic costs.

How Do They Compare?

Real-World Scenarios

Healthy individual, 1–2 doctor visits/year:

• HDG may cost less overall if you don’t use services often.
  
• Plan N still offers predictable costs without big upfront risk.
  

Unexpected hospitalization or surgery:

• HDG means you’ll pay up to the $2,870 deductible out of pocket first.
  
• Plan N covers major costs with much lower upfront spending.

‍Plan N wins here - small copays are manageable and the deductible is low.

Key Takeaways

High-Deductible Plan G is for Texans who are comfortable budgeting for larger bills and want to keep monthly premiums as low as possible.

Plan N is a better fit for those who want reasonable premiums and some immediate coverage, but are okay with a few copays and the rare chance of excess charges.

Both options help protect you from the biggest Medicare gaps - but the best fit comes down to your health habits, financial preferences, and risk tolerance.

Long-Term Cost Analysis

When you’re comparing Medigap plans, it's important to think beyond just what you'll pay this year.

What happens over 5, 10, or even 15 years can make a big difference to your financial health - especially in retirement.

What About Premium Increases?

High-Deductible Plan G (HDG) typically starts with the lowest monthly premium of any Medigap plan.

And because you’re taking on more of the upfront cost (the deductible), insurance companies often raise HDG premiums more slowly than they do for standard Plan G or Plan N.

Over time, this can mean:

• Smaller annual rate hikes
  
• More predictable budgeting
  
• Greater savings, especially if you remain healthy
  

For example, even if HDG premiums increase by $5–$10 per year, they may still stay far below traditional Plan G, which can rise by $15–$25/year in some Texas ZIP codes.

Premium Savings Can Add Up

Bottom Line

If you’re relatively healthy and comfortable managing some out-of-pocket costs, High-Deductible Plan G often comes out as the most cost-effective Medigap plan over time.

It’s especially appealing for:

• People who want to minimize monthly premiums
  
• Retirees with flexible savings or HSAs
  
• Those planning for long-term Medicare stability
  

For many Texans, HDG delivers the best of both worlds: low monthly cost and strong protection when you really need it.

Healthcare Usage Scenarios

Choosing the right Medicare Supplement plan often comes down to one simple question: how much do you expect to use your coverage?

Below are three common scenarios we see with our clients, and how High-Deductible Plan G (HDG), Plan N, and standard Plan G each fit.

Scenario #1: Minimal Use - Healthy and Active

Profile:

• No chronic conditions
  
• 1–2 routine doctor visits per year
  
• No ER visits or hospital stays
  

Estimated Annual Costs:

• HDG: $300–$700
  
• Plan N: $1,200–$1,500
  
• Plan G: $1,800–$2,000+
  

Best Fit: High-Deductible Plan G. You’ll save hundreds in premiums and likely never hit the deductible. Perfect for budget-conscious retirees in good health.

Scenario #2: Moderate Use - Routine Care and Specialists

Profile:

• Several office visits per year
  
• Occasional specialist visits
  
• Lab work, imaging, or minor outpatient procedures
  

Estimated Annual Costs:

• HDG: $1,500–$2,500 (depending on deductible usage)
  
• Plan N: $1,600–$2,000 (copays add up, but premiums are lower)
  
• Plan G: $2,000+
  

Best Fit: It depends. Plan N offers predictable copays and moderate premiums - good for people who like knowing what they’ll pay. HDG could still save you more long-term if you don’t meet the full deductible every year.

Scenario #3: High Use - Chronic Conditions and Hospitalizations

Profile:

• Ongoing treatments or therapies
  
• Frequent doctor visits
  
• Hospital stays or ER usage likely
  

Estimated Annual Costs:

• HDG: $3,000–$8,000 (you’ll almost certainly meet the deductible)
  
• Plan N: $2,000–$2,800+ (copays + uncovered excess charges)
  
• Plan G: $2,000–$2,400 (covers nearly everything except Part B deductible)
  

Best Fit: Standard Plan G. It offers the most comprehensive coverage with the least financial surprises. Even though it costs more monthly, you avoid large one-time bills that can add up fast.

In a Nutshell

The best plan isn’t just about the lowest premium - it’s about finding the right match for your health and financial comfort.

Ask yourself:

• How often do I see doctors or specialists?
  
• Could I cover a larger expense if it hit all at once?
  
• Am I more concerned about saving monthly, or avoiding surprises later?
  

Always build in a cushion. Even healthy retirees can have an unexpected procedure or hospitalization - so plan ahead, and choose coverage that gives you peace of mind.

Why Do Medigap Premiums Go Up?

Even though Medicare Supplement plans are standardized, their monthly premiums aren’t fixed for life - and that can be a surprise for many Texans.

Several factors cause Medigap premiums to rise year over year:

• Age: Most plans in Texas use “attained-age” pricing, which means your premium increases as you get older.
  
• Medical inflation: As the cost of care rises across the country, insurers raise premiums to keep up.
  
• Claims experience: If a company’s policyholders file more claims than expected, the insurer may adjust premiums to compensate.
  

These increases are usually annual and gradual, but over a decade, they can add up - especially if you’re on a plan with higher starting premiums like Standard Plan G.

What Texas Residents Can Expect

From our experience working with clients across the state, here’s what you can generally expect:

• Standard Plan G tends to experience the most noticeable increases over time due to its comprehensive coverage and higher usage rates.
  
• Plan N offers more modest rate increases - but this can vary based on your location and health history.
  
• High-Deductible Plan G (HDG) tends to have the slowest rate increases, mainly because it shifts more upfront cost to the enrollee. Since insurers take on less risk, they often price this plan more conservatively and raise rates more slowly.
  

Some insurers, like Blue Cross Blue Shield of Texas or Mutual of Omaha, also have reputations for relatively stable rate histories, especially when paired with household discounts.

Bottom Line

If you're worried about long-term affordability, High-Deductible Plan G is often the most stable in terms of premium growth.

While you’ll need to budget for the higher deductible, the trade-off is that you’re less likely to see major jumps in your monthly bill year after year.

For many healthy Texans, this plan offers a smart hedge against premium inflation - helping you control your Medicare costs well into your 70s and beyond.

Budgeting for the High-Deductible Plan G (HDG) Deductible

One of the most common concerns we hear about High-Deductible Plan G is: “What if I actually hit the deductible?”

The good news: with some simple planning, that $2,870 deductible doesn’t have to be intimidating.

Here’s how to prepare and protect your budget.

#1. Build an Emergency Medical Fund

Treat your deductible like you would a car insurance deductible or emergency home repair fund.

Set aside $2,870 annually in a dedicated savings account so you’re ready if a big medical expense hits.

You might never need to touch it. But if you do, you’ll be thankful the money’s already there.

Think of it as your “deductible safety net.”

#2. Redirect Your Premium Savings

Compared to Standard Plan G, HDG often saves $80/month or more in premiums - that’s nearly $960/year.

Instead of pocketing that savings, reroute it into your medical fund.

In just 12 months, you’ve already built up your full deductible buffer. This strategy turns your premium savings into real financial protection.

#3. Use HSA or Retirement Accounts Wisely

Still working? If you have a Health Savings Account (HSA), you can use it tax-free for Medicare-covered expenses -including your HDG deductible.

Retired? You may be able to use IRA or 401(k) withdrawals to cover medical costs. This can be done strategically to manage taxes and preserve cash flow.

Talk with your financial advisor to make sure you’re using your retirement tools efficiently.

HDG’s deductible might sound high at first - but with a little proactive planning, it becomes just another part of your yearly budget.

In return, you get a lower premium every month, predictable worst-case expenses, and peace of mind knowing you’ve prepared for both good and bad health years.

Switching from HDG to Standard Plan G

You can apply to switch from HDG to a standard Plan G at any time, but unless you're in your Medigap Open Enrollment or a Guaranteed Issue period, you'll likely go through medical underwriting.

This means the insurance company can:

• Ask detailed health questions
  
• Review your prescription history
  
• Possibly consider height and weight
  
• Deny your application based on pre-existing conditions
  

What Does Underwriting Look Like?

Underwriting varies slightly by company, but in general, you’ll need to:

• Disclose recent diagnoses, hospitalizations, or ongoing treatments
  
• List all current medications
  
• Confirm that you haven’t had certain serious conditions within the past 2–5 years (e.g. heart attack, stroke, cancer)
  

Important: Even if you're already on HDG, switching to a standard Plan G isn't automatic - you must still qualify medically unless you're within a protected window.

If HDG fits your needs today and you're in good health, it’s a great time to enroll.

But be aware: If your health changes later, you may not be able to move to a standard plan without denial - so it’s important to think long-term.

Final Thoughts

High-Deductible Plan G is a smart, strategic option for many Texans - especially those who are healthy, budget-conscious, or just want a safety net without high monthly premiums.

When you approach HDG the right way - by:

• Budgeting for the deductible
  
• Reviewing your health annually
  
• Staying informed on your options
  

…it can deliver long-term savings without sacrificing peace of mind.

Best for: Texans who are proactive, value flexibility, and don’t mind managing a bit more risk.

Not ideal for: People with complex health needs or those who want predictable, fixed costs.