MEDICARE FOR THE LAZY MAN
Making Medicare Almost Fun Since 2013
By Douglas B. Jones, CLU, RHU
Dear Doug: I've been reading about Medicare supplements and I keep seeing Plan G mentioned everywhere. My neighbor's insurance agent set her up with Plan G and she seems happy. But I keep feeling like I'm missing something. Am I?
— Suspicious in Sacramento
Dear Suspicious, your instincts are excellent and your neighbor's agent is almost certainly not going to tell anyone what I'm about to reveal. There exists a Medicare supplement plan so cost-effective, so sensible, and so thoroughly ignored by insurance agents that it might as well be classified Top Secret. It is called High Deductible Plan G, or HDG, and it is the best-kept secret in all of Medicare.
Why don't agents want to talk about it? Simple arithmetic. Agents earn more commission when you buy a more expensive plan. Plan G, the Cadillac of Medicare supplements, pays them handsomely. HDG, which I like to call the High Value Plan, pays them considerably less. So, when you sit down with a typical agent, Plan G is where the discussion goes. HDG never makes an appearance.
Here is what HDG actually does. It works exactly like Plan G — same comprehensive protection, same freedom to see any doctor in the country who accepts Medicare, no networks, no referrals and no prior authorization disasters. There is only one difference: instead of paying a hefty monthly premium for Plan G, you pay a fraction of that cost. In many states, HDG runs between $40 and $60 per month for a 65-year-old, compared to Plan G premiums that can run $150 to $300 or more depending on location. Premiums vary considerably by state and insurer, so your numbers may differ — but the gap between HDG and Plan G is considerable everywhere.
The trade-off of accepting a “high deductible” sounds scarier than it actually is. In the unlikely event of a very bad medical year, your out-of-pocket cost sharing is capped at $2,950 in 2026. But here's what the plan's ominous-sounding name doesn't tell you: Medicare pays its share first, every single time, regardless of whether you have HDG or Plan G or no supplement at all. Medicare covers 80% of your outpatient bills after a modest $283 annual deductible. HDG begins to pay the remaining 20% once your share reaches that $2,950 ceiling.
In a typical year — one without catastrophic illness — HDG holders can pocket well over $1,200 in premium savings compared to Plan G buyers. In a worst-case year with enormous bills, your real out-of-pocket cost, after accounting for those premium savings, is substantially less than the scary $2950. That's it. And every year of good health puts more money back in your pocket.
The plan practically improves with age. Since HDG premiums start lower, the dollar amount of any future rate increases will also be lower than those facing Plan G owners. If both plans raise rates by the same percentage, the HDG owner’s dollar increase is a fraction of the Plan G owner’s. Over time, the accumulated premium savings can exceed even a worst-case medical year.
So why isn't everyone on this plan? Because most people are never told it exists. Now you know. The magic words to use with any insurance agent are simply: High Deductible Plan G.
Grab him by the lapels if you must!
Douglas B. Jones, CLU, RHU is the author of Medicare for the Lazy Man, now in its 2026 edition, and host of the Medicare for the Lazy Man Podcast. His services as a Medicare insurance agent are always free of charge. Contact him at www.MedicareForTheLazyMan.com
