What Is the Cost of the Best Medicare Insurance Plan?
And it is less expensive than you think
Whether you are approaching age 65, or already on Medicare, a key question is: What is the best Medicare insurance plan, and what does it cost?
With so many options, from Medicare Advantage to dozens of Medigap (Medicare Supplement) plans, it's easy to feel overwhelmed.
But here's the good news: there's a little-known Medicare Supplement plan that combines comprehensive coverage with affordable monthly premiums. It’s called High-Deductible Plan G, and for many informed retirees, it’s the best-kept secret in Medicare insurance.
In this article, we’ll explore:
Why is Plan G considered one of the best Medicare options available
How the High-Deductible version works
What you can expect to pay for coverage
Who benefits most from this plan
Why Plan G Is a Top Choice for Medicare Coverage
Among the standardized Medigap plans available, Plan G is the most commonly purchased. The primary reasons for buying the Medicare Supplement Plan G are:
Comprehensive coverage: It covers all the major gaps in Original Medicare except for the Part B deductible.
Nationwide access: You can see any doctor or specialist who accepts Medicare—no networks.
Predictable costs: No surprise copays or coinsurance.
Plan G has earned its reputation as a “buy-it-and-forget-it” plan, offering peace of mind to seniors who want robust protection without the managed care restrictions of Medicare Advantage plans.
Introducing High-Deductible Plan G (HDG): The Budget-Smart Version
High-Deductible Plan G offers the same coverage as standard Plan G, but with a significant twist: You pay a much lower monthly premium in exchange for covering more of your own out-of-pocket costs up front.
For 2025, the annual deductible for HDG is $2,800. That means you’ll pay your share of the Medicare-approved charges up to that amount out of pocket before the plan pays 100% of the rest, just like standard Plan G.
It is also important to note that the $2800 deductible is not a deductible as you know it. Medicare still pays 80% of your Medicare-approved medical charges after the 2025 Part B deductible of $257 and 100% of your hospital charges after the 2025 Part A deductible of $1676 per benefit period.
In short you get:
Lower monthly premiums—as little as $35 to $65 per month in many states
Lower annual premium increases
Full coverage of your Medicare cost-sharing after meeting the deductible
Freedom of choice to see any doctor who accepts Medicare
What Does High Deductible Plan G Cost in 2025?
Monthly premiums for HDG vary by age, gender, tobacco use, and zip code, but here’s a general idea:
State
Monthly Premium (age 65, non-smoker)
Texas - $36 – $48
Florida - $42 – $60
North Carolina - $38 – $50
Arizona - $35 – $47
California - $40 – $65
In 2025, I switched my wife and me from a Medicare Advantage Plan to a High-Deductible plan. My wife's monthly premium at age 79 is $59, while my monthly premium at age 72 is $53. But even with increases, HDG remains one of the most affordable ways to secure excellent Medicare coverage.
Who Should Consider High-Deductible Plan G?
This plan is a smart choice if you:
Are generally healthy and rarely see the doctor
Prefer lower monthly premiums and can budget for occasional higher out-of-pocket costs
Want full freedom to choose your providers
Dislike the idea of being stuck in a Medicare Advantage network
Are planning for the long term and want to avoid coverage gaps or limited access
Even if you do meet the deductible each year, HDG often still costs less overall than other Medigap or Medicare Advantage options.
Is HDG the Right Plan for You?
Choosing the right Medicare plan is both a personal decision as well as a financial one. Many retirees are shocked by how affordable High-Deductible Plan G can be. If you’re comfortable covering occasional out-of-pocket expenses, this plan could help you save thousands over your retirement while still offering first-class coverage.
The High-Deductible G is the perfect fit if:
Prefer lower monthly premiums and can budget for occasional higher out-of-pocket costs
Want full freedom to choose your providers
Dislike the idea of being stuck in a Medicare Advantage network
Are planning for the long term and want to avoid coverage gaps or limited access
Even if you do meet the deductible each year, HDG often still costs less overall than other Medigap or Medicare Advantage options.
Why Didn’t My Agent Tell Me About This?
Regardless of how great your agent is, few agents want to talk about this plan for three very important reasons, First, the supplement plan High-Deductible G is a bit more complicated than the G Plan. On the Medicare Supplement Plan G, after you have met the Part B deductible, 100% of all Medicare-approved charges are covered. You never receive a bill.
When you are on the High-Deductible G you are responsible for your share of the Medicare-approved charges. That means that you will receive medical bills. Individuals (like my wife) dealing with medical conditions may encounter numerous bills. Sometimes, clients lose track and call the agent for help.
Second and very important is the agent’s commission. Remember that the agent’s commission is a percentage of the monthly premium. The premium for the Medicare Supplement Plan G is approximately three to four times the premium of the High-Deductible G.
None-the-less, I should point out that I have numerous clients who are on the Plan G. But these are clients that could easily afford the G plan premiums and elected the simplicity of the plan over saving money.
The third and final reason agents do not talk about the supplement plan High-Deductible G is that they do not understand the out-of-pocket medical costs. As I indicated earlier, I moved my wife and me from a Medicare Advantage Plan to a supplement High-Deductible G this year, even though my wife is battling cancer.
We were lucky, and the insurance company canceled our Advantage Plan. That allowed us to return to Original Medicare and buy a supplement regardless of health. The reasons that I moved us to the Medicare Supplement High-Deductible G were:
The potential out-of-pocket costs were half of the out-of-pocket expenses in the Advantage Plan
I did not want to risk losing access to her specialists in the middle of treatment
I wanted the freedom to go to any doctor who accepted Medicare anywhere in the US. This would be important if we wanted to go out of state for care.
I wanted a plan that we could afford long-term. I knew that with premium increases the Plan G would become a financial burden over time.
Understanding Costs
Because my wife is undergoing treatment for cancer, I can share some of our out-of-pocket charges. I logged into my wife’s medicare.gov portal for these charges.
Medical Oncologist visit: The provider charged $402 but Medicare approved $172 and our share was $34.55. This was less than our copay would have been on the Advantage Plan.
Whole Body CT with Contrast: Medicare Approved charge was $8032, our share was $310.92. Our copay on our Advantage Plan would have been $250.
The point is that when compared to an Advantage Plan, the costs for the Plan High-Deductible G are comparable.
But the freedom to get the best care possible is priceless!
Final Thoughts
So, what’s the cost of the best Medicare insurance plan? If you ask me—and many savvy retirees — the answer is High Deductible Plan G. It combines the freedom, protection, and simplicity of Original Medicare + Medigap, but at a price that fits most retirement budgets.
Don’t let the deductible scare you. With the right planning, this high-value option can give you the coverage you need and the savings you deserve.
Want help running the numbers? As someone who’s helped thousands of Medicare beneficiaries over the years, I’m happy to help you compare your options. Use the contact form or schedule a free 15-minute call today, let’s find the plan that works best for you.
