Medigap Showdown: Plan G, Plan N & High Deductible G – Which Saves You More?
Choosing the right Medigap plan is a crucial financial decision for new Medicare enrollees. The three most popular options—Plan G, Plan N, and High Deductible Plan G—offer different trade-offs between monthly premiums and out-of-pocket costs. A new analysis breaks down the 2026 breakeven math to help you decide which plan fits your healthcare usage.
The Three Plans at a Glance
- Plan G: The comprehensive baseline. It covers nearly all Medicare-approved costs after you pay the Part B deductible. Premiums are higher, but out-of-pocket expenses are minimal.
- Plan N: A lower-premium alternative. It requires copays of up to $20 for doctor visits and $50 for emergency room visits (waived if admitted). Premiums are generally lower than Plan G, but you risk higher costs with frequent visits.
- High Deductible Plan G: The catastrophic option. It has very low monthly premiums but a high deductible (e.g., $2,800 in 2026). Once the deductible is met, coverage mirrors Plan G. Best for those who seldom use healthcare.
Breakeven Math
The key question: At what level of healthcare usage does one plan become cheaper than another? The analysis uses average premium ranges from the 2026 CMS Medigap Shopper's Guide and typical copay amounts to project costs over one year and 20 years.
- Low usage (fewer than 5 doctor visits per year, no hospital stays): High Deductible Plan G nearly always wins due to its low premiums.
- Moderate usage (about 10–20 visits plus some lab work): Plan N often beats Plan G, thanks to its lower premiums, as long as the copays don't add up.
- High usage (chronic conditions, multiple specialists, or hospital stays): Plan G becomes cost-effective, as the higher premium is offset by zero copays and full coverage.
Long-Term Projections
Over 20 years, the choice can mean a difference of tens of thousands of dollars. Plan G's premium increases tend to be steeper, while High Deductible Plan G's premiums rise more slowly but the deductible also increases over time. Plan N sits in the middle.
Tips for Choosing
- Estimate your typical annual healthcare use.
- Check current premium quotes for all three plans from several insurers.
- Consider your risk tolerance: higher premium for predictable costs vs. lower premium plus potential copays or deductible.
- Don't let an agent steer you toward a plan that pays them more commission.
For a deeper dive, including rate tables and a quiz, watch the full video or consult the official CMS Medigap guide.