High-Deductible Plan G — A different approach to Medicare Plan G
Have you heard about the new High-Deductible Plan G and want to understand what the hype is all about? We’re here to help!
High-Deductible Plan G is much like the standard Plan G, except it covers all Medicare approved hospital and medical costs once the total deductible of $2,870 is met. Medicare continues covering 80% of costs after the Part B deductible is met, but before the High-Deductible G deductible is met.
So, who typically sees the most value from High-Deductible Plan G? Medicare beneficiaries who want to save money on monthly premiums and don’t visit the doctor’s office frequently.
Here’s how High-Deductible Plan G is different.
- Same benefits as Standard Plan G, but with a deductible before coverage begins (the total deductible in 2025 is $2,870 which includes the Part B deductible of $257).
- Medicare still pays 80% of Part B services after the Part B deductible is met. You cover the remaining 20% until you reach the full $2,870 deductible.
- Once the deductible is met, the plan is identical to standard Plan G and covers 100% of all Medicare approved services for the rest of the year.
- Preventive services (covered at no cost) and home healthcare, clinical lab services and diagnostic tests (covered 100% by Medicare) are all covered before the deductible is met.
Interested but not sure if High-Deductible Plan G or Plan G is right for you? Let’s do the math.
High-deductible plans typically showcase low premiums (that’s the tradeoff). So, would the monthly lower premium of High-Deductible Plan G fit better with your budget, even if it meant that you could be spending an additional $2,870 out-of-pocket? Or would you rather pay a higher monthly premium with standard Plan G and not worry about out-of-pocket costs throughout the year?
Example: Plan G vs. High-Deductible Plan G
Scenario: A $3,000 Medicare Part B medical bill in which Medicare Part B has approved $1,000.
| Plan G | High-Deductible Plan G | |
| Medicare Approved | $1,000 | $1,000 |
| Part B Deductible | $257 | $257 |
| Medicare Pays (80% of remaining $743) | $594.40 | $594.40 |
| Medicare Supplement Plan Pays | $148.60 (20% of remaining $743) | $0 until Deductible met then 100% |
| Total You Pay | $257 (Part B Deductible) | $405.60 (Part B Deductible + 20% of remaining $743) |
| Remaining Part B Deductible | $0 | $0 |
| Remaining Plan G Deductible | N/A | $2,464.40 ($2,870 – $257 – $405.60) |
In this example, with High-Deductible Plan G, you continue paying 20% of costs until your $2,870 deductible is met. After that, the plan pays 100% of all Medicare covered services.
Blue Cross and Blue Shield of Kansas City is an independent licensee of the Blue Cross and Blue Shield Association. Medicare Supplement plans are offered and underwritten by MVLH, a wholly owned subsidiary of Blue Cross and Blue Shield of Kansas City, and are administered by Blue Cross and Blue Shield of Kansas City. Missouri Valley Life and Health (MVLH) and Blue Cross and Blue Shield of Kansas City are not connected with or endorsed by the U.S. government or the federal Medicare program.
