If you have a High-Deductible Medigap plan or are thinking about switching to one, there’s an important update for 2026. The deductible for both High-Deductible Plan G and High-Deductible Plan F will increase from $2,870 in 2025 to $2,950 in 2026.
These plans continue to offer the same coverage once the deductible is met, but it’s helpful to understand how the change might affect your budget and whether a high-deductible option is still a good fit for your needs. Let’s take a closer look at how these plans work and what the 2026 increase means for Medicare beneficiaries.
What Are High-Deductible Medigap Plans?
High-deductible Medigap plans work the same way as their standard counterparts (Plan G and Plan F), but with one major difference: you pay a larger deductible out of pocket before the plan begins paying benefits.
That deductible acts as your annual limit. Once you’ve paid $2,950 in 2026 toward Medicare-covered costs such as deductibles, copayments, and coinsurance, your High-Deductible Plan will start paying 100% of Medicare-approved expenses for the rest of the year.
Because you’re taking on more of the initial cost burden, these plans come with lower monthly premiums compared to standard Medigap plans. For many retirees on a budget, that trade-off makes them an appealing option.
How the $2,950 Deductible Works in 2026
In 2026, both High-Deductible Plan F and High-Deductible Plan G will have a deductible of $2,950, up slightly from $2,870 in 2025. This increase reflects the annual cost adjustments set by the Centers for Medicare & Medicaid Services (CMS) to account for inflation and rising healthcare expenses.
Here’s how it works in practice: before your plan begins paying benefits, you’re responsible for the first $2,950 of Medicare-approved expenses. That total includes costs such as:
- The Part A hospital deductible
- The Part B deductible
- Coinsurance and copayments under Parts A and B
Once you reach that $2,950 out-of-pocket threshold, your High-Deductible Medigap plan will cover 100% of any additional Medicare-approved costs for the remainder of the calendar year.
It’s important to note that this deductible resets every January 1. So if you meet your deductible late in the year, it will start over at the new amount the following year.
Premiums vs. Deductibles: Finding the Right Balance
The main appeal of high-deductible Medigap plans is their lower monthly premiums. In exchange, you take on the risk of paying more out of pocket if you have a year with higher medical expenses.
For example, let’s say you’re comparing a standard Plan G with a monthly premium of $170 versus a High-Deductible Plan G at $70 per month. That’s a $100 difference each month, about $1,200 in annual premium savings.
If your total Medicare-covered expenses for the year are less than $1,200, you’d come out ahead with the high-deductible version. But if you have major medical needs and meet the full $2,950 deductible, your total spending could exceed what you would have paid in premiums for a standard Plan G.
In short, these plans reward people who have lower medical costs and don’t visit the doctor frequently, but they can be more expensive in a year with unexpected health issues.
Who Should Consider a High-Deductible Medigap Plan
High-Deductible Plan G or Plan F can be an excellent choice for certain Medicare beneficiaries, but they’re not right for everyone.
These plans typically work best for people who:
- Are in good health and rarely visit the doctor
- Want comprehensive coverage for worst-case scenarios but don’t mind paying smaller expenses out of pocket
- Prefer lower monthly premiums and are comfortable with some financial risk
- Have savings set aside or access to funds to cover the deductible if needed
They can also be a smart choice for retirees transitioning from an employer plan with a Health Savings Account (HSA). While you can’t contribute to an HSA after enrolling in Medicare, the funds you’ve already saved can be used tax-free to pay your deductible or other qualified medical expenses.
On the other hand, beneficiaries with chronic conditions or those who prefer predictable, fixed healthcare costs each month may be better suited for a standard Plan G or Plan N.
Comparing High-Deductible Plans to Other Medigap Options
When evaluating Medigap coverage, it’s important to compare the total annual cost, not just the premium.
A standard Plan G offers full coverage after the small Part B deductible, so you’ll have minimal out-of-pocket expenses throughout the year. However, premiums are higher because you’re transferring nearly all cost risk to the insurer.
Plan N is another alternative worth comparing. It typically has lower premiums than standard Plan G and includes modest copayments (up to $20 for office visits and $50 for ER visits). For some, Plan N offers a good middle ground between cost and coverage.
Meanwhile, High-Deductible Plan G offers the lowest monthly premium of the three but requires you to pay up to $2,950 before full coverage begins. That trade-off can work well for healthy individuals but may cause financial strain for someone who faces frequent doctor visits or hospital care.
Finding the Right Plan with Carolina Senior Benefits
Choosing a Medigap plan is a personal decision. There’s no one-size-fits-all answer. Your ideal plan depends on your health, budget, and comfort with risk.
At Carolina Senior Benefits, we help Medicare beneficiaries compare all their options, including High-Deductible Plan G, standard Plan G, and Plan N. Our licensed agents can explain how each plan works, review current premiums in your area, and help you decide whether a high-deductible plan makes sense for your 2026 coverage.
If you’d like a personalized quote or want to explore ways to save on your Medicare supplement, contact Carolina Senior Benefits today. We’re here to make Medicare simple, clear, and affordable.
