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Is Medigap Plan G worth it?

Plan G trades a monthly premium for almost no medical bills. Here is the math to run, and the case for it and against it.

Updated September 3, 2026 · 3 min read · by Gerino Alejos

A single white puzzle piece reading Medigap on a bright blue background. — After you pay the annual Part B deductible once, Plan G covers essentially everything else Medicare leaves you for covered services.

Key points

Plan G pays nearly every bill Medicare leaves you, after one set amount you pay yourself each year.
Part B leaves you 20 percent of a bill with no limit, so $50,000 of care can cost you $10,000.
Buy a supplement when you first qualify and you keep it for life, but switching later means a health review.

Plan G is a Medigap policy, a supplement that pays the shares of a bill Medicare leaves you. You pay a premium, the monthly bill for coverage, and owe almost nothing else. Whether it is worth it depends on your health and your budget, and on how much risk you want to carry yourself.

What Plan G covers

Part B is the part of Medicare that pays for doctor visits and outpatient care. It has a deductible, an amount you pay yourself first each year. Plan G picks up nearly all the rest.

The Part A hospital deductible. You can owe it more than once a year if you go back in after a break.
All Part B coinsurance. Coinsurance is your share of a bill, and here it is 20 percent with no cap.
365 extra hospital days after Medicare's own run out.
Skilled nursing coinsurance. Skilled nursing is short term nursing care after a hospital stay.
Part B excess charges, the extra a doctor may bill above what Medicare pays.
Emergency care while you travel outside the country, up to a limit.

You can use any doctor in the country who takes Medicare. There is no network, the list of doctors a plan contracts with. Most care needs no referral and no prior authorization, a plan's permission to get treated.

The calculation: premium versus exposure

Put two yearly totals side by side.

Plan G path. Twelve months of the Plan G premium, plus twelve months of a Part D drug plan, plus the Part B deductible once. This total barely moves.
Advantage path. Twelve months of that plan's premium, plus its out of pocket maximum, the yearly cap on what you can be charged. That is your bad year. In a healthy year you might pay almost nothing.

Put a number on it. Part B leaves you 20 percent with no cap, so a $50,000 course of care leaves you owing $10,000. Plan G pays that share.

So the question is not which costs less this month. It is which number you would rather face in a bad year.

When Plan G is clearly worth it

You travel, or spend part of the year in another state.
You have a long term condition and see specialists often.
You want one specific doctor or hospital, whatever a plan's network says.
A large surprise bill would be hard on you.
You would rather pay a set amount than deal with approvals and referrals.

When it may not be

You are healthy, your doctors are in a strong local network, and you stay close to home.
Dental, vision and hearing benefits on Advantage plans are worth real money to you.
The premium would strain your budget every month. That is a fair reason on its own.
You qualify for Medicaid or a savings program. A dual eligible plan, for people on both Medicare and Medicaid, may leave you paying almost nothing. See D-SNP plans.

The argument people miss: predictability

Buying Plan G during your six month open enrollment also buys an option. Medigap policies are guaranteed renewable, so once you hold one you keep it for life whatever your health does. Start on Advantage and move to a supplement later, and you must pass underwriting, where the company reads your health history and can say no.

Cheaper ways to get most of it

Plan N. The same coverage for a lower premium, but you pay small copays, a flat fee at the visit, and it skips excess charges. See G next to N.
High deductible Plan G. A much lower premium, and you pay a set amount yourself each year first. See how it works.
Shop companies. Coverage is the same by law from one company to the next, so a lower price is only a lower price. See comparing rates.

Write down both yearly totals for your own case, then decide which bad year you could live with. To run those numbers with us, call our McAllen office at (956) 687 3334, or enter your ZIP code in the plan pricing box on this page.

Common follow-up questions

Is Plan G cheaper than a Medicare Advantage plan?

Month to month, almost never. Across a year with heavy medical costs, often yes. It depends on your health, not on the plans.

Can I drop Plan G later if it gets expensive?

Yes, you can drop it any time. Getting it back later would mean passing a health review, so treat dropping as one directional.

Does Plan G cover prescriptions?

No. You need a separate Part D drug plan. Count both when you compare Plan G against an Advantage plan.

Want this looked at properly?

We are an independent agency in McAllen serving Hidalgo, Cameron and Starr counties. There is no obligation to talk it through.

Call (956) 687 3334

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