Utah · Medicare Supplement · 2027
High-Deductible Plan G in Utah: 2027 Deductible Is $3,050
CMS has set next year's high-deductible Plan G deductible. Here is what it covers, how many Utahns already use it, and how to work out whether the lower premium is worth the bigger bill in a bad year.
The bottom line
- The 2027 deductible is $3,050, up from $2,950 in 2026. CMS used a 3.4% CPI-U increase. It has risen 30.3% since 2020.
- It is the same Plan G once you have paid $3,050 of Medicare-covered costs in the year. Premiums and Part D drug costs do not count toward it.
- Utah buyers are switching to it. 11,142 Utahns had high-deductible G in 2024, up from 1 in 2020. About 33.2% of Utah Medigap members were on some high-deductible plan (Utah Insurance Department).
- The real trade-off is smaller than $3,050. With standard G you already pay the Part B deductible, so the most extra you can owe in a year is about $2,767 (using the 2026 Part B deductible).
- Divide that by your yearly premium savings. The answer is how many years of savings pay for one bad year.
- Get real quotes first. Utah posts company-by-company Medigap rates at medigap.utah.gov.
For 2027, high-deductible Medigap Plan G has a $3,050 annual deductible. CMS set that amount in October 2026. You pay Medicare-covered coinsurance, copays and deductibles up to $3,050 in the calendar year, and after that the policy pays the same benefits as standard Plan G for the rest of the year. In return, the monthly premium is lower. Medicare's Annual Enrollment Period runs through December 7, and many Utahns on Original Medicare use it to review their supplement too, although Medigap itself has no annual enrollment window. This guide covers the rules, the Utah numbers and the math. It is general information, not advice about your own situation.
What changed for 2027?
Only the dollar amount. Federal law set the high-deductible amount at $1,500 for 1998 and 1999 and requires it to rise each year with the Consumer Price Index for All Urban Consumers (CPI-U). CMS publishes the new figure after the August inflation data comes out. For 2027 it applied a 3.40% increase and rounded to the nearest $10, which produces $3,050. The same amount applies to high-deductible Plans F and J.
Source: CMS, "Deductible Amount for Medigap High Deductible Options F, G & J for Calendar Year 2027" (October 2026, PDF), and earlier-year announcements on the CMS F, G & J deductible page.
High-deductible Medigap deductible by calendar year. Source: CMS annual F, G & J deductible announcements (2010, 2015 and 2020–2027 shown). The 2010 amount was unchanged from 2009.
Inflation shows clearly here. The deductible rose just $30 from 2020 to 2021, then jumped $210 for 2023 after the 2022 inflation spike. That is why a buyer should expect the deductible to keep rising every year, the same way premiums do.
What does high-deductible Plan G cover, and what counts toward the deductible?
Medicare.gov describes it in one sentence: you "must pay up to $2,950 in 2026 for Medicare-covered costs (coinsurance, copayments and deductibles) before your policy pays anything." For 2027 that figure becomes $3,050. In practice:
- Counts toward it: the Part A hospital deductible, the Part B deductible, the 20% Part B coinsurance, hospital and skilled nursing coinsurance, and other cost-sharing Original Medicare leaves you.
- Does not count: your Medigap premium, your Part B premium, and prescription costs under a separate Part D plan. Part D has its own out-of-pocket limit of $2,400 for 2027 (CMS).
- After you reach it: the policy pays like standard Plan G for the rest of the calendar year. The deductible resets every January 1.
So the most a high-deductible G policyholder pays for Medicare-covered medical care in 2027 is $3,050, plus premiums. Add the Part D limit and the combined ceiling for medical and drug cost-sharing is $5,450, before premiums.
How many Utahns have high-deductible Plan G?
Utah's numbers show a clear shift. Insurers report Medigap membership by plan to the Utah Insurance Department each year. High-deductible Plan G went from essentially zero in 2020, its first year on sale, to 11,142 members in 2024. Over the same period, standard Plan G stayed flat at about 27,000 to 29,000 members while total Utah Medigap membership fell.
| Data year | High-deductible G members | Share of Utah Medigap | Standard Plan G members | All Utah Medigap members |
|---|---|---|---|---|
| 2020 | 1 | <0.1% | 28,354 | 87,007 |
| 2021 | 6,383 | 7.4% | 26,753 | 86,290 |
| 2022 | 7,950 | 9.3% | 28,529 | 85,607 |
| 2023 | 9,622 | 11.5% | 28,918 | 83,425 |
| 2024 | 11,142 | 14.0% | 27,594 | 79,785 |
Source: Utah Insurance Department, Utah Health Insurance Market Report, 2021–2025 editions (table "Medicare Supplement Membership by Plan Type," Utah Accident & Health Survey); each edition reports the prior calendar year. 2025 report (PDF) · 2024 report (PDF). Commercial insured business only.
In 2024, 98 insurers reported Utah Medigap members. High-deductible Plan F had another 14,817 members and high-deductible Plan J had 558. Together with high-deductible G, that is 26,517 people, or about 33.2% of Utah's 79,785 Medigap members. For comparison, Plan N had 7,372. Roughly one in three Utah Medigap members has chosen a deductible in exchange for a lower premium.
How do you know whether the lower premium is worth it?
The $3,050 headline overstates the real risk. Neither standard Plan G nor high-deductible G covers the Part B deductible, so you pay that under both plans. On high-deductible G, that same payment counts toward the $3,050. That means the most extra you can pay in a year is the high deductible minus the Part B deductible. The 2027 Part B deductible had not been announced as of October 25, 2026. Using 2026's $283, the gap is about $2,767.
Then compare that to what you save. Years of premium savings needed to cover one worst-case year = $2,767 ÷ (monthly premium gap × 12).
| If high-deductible G costs this much less per month | You save this much per year | Years of savings to cover one worst-case year |
|---|---|---|
| $50 a month | $600 a year | About 4.6 years |
| $75 a month | $900 a year | About 3.1 years |
| $100 a month | $1,200 a year | About 2.3 years |
| $125 a month | $1,500 a year | About 1.8 years |
| $150 a month | $1,800 a year | About 1.5 years |
Original illustration by the Utah Retirement Income Data Desk. The premium gaps are hypothetical, not quotes; actual Utah gaps depend on the company, your age, ZIP code, tobacco use and how the company sets rates. Worst-case extra cost = CMS 2027 high deductible ($3,050) minus the 2026 Part B deductible ($283). Ignores Part B excess charges, premium increases and investment return on savings.
The same idea year by year: suppose high-deductible G costs a hypothetical $100 a month less than standard G. Here is how a light year and a heavy year compare.
| Your Medicare-covered cost-sharing that year | You pay on standard Plan G | You pay on high-deductible G | Net, after $1,200 premium savings |
|---|---|---|---|
| $283 | $283 | $283 | High-deductible G saves $1,200 |
| $800 | $283 | $800 | High-deductible G saves $683 |
| $1,500 | $283 | $1,500 | High-deductible G costs $17 more |
| $2,500 | $283 | $2,500 | High-deductible G costs $1,017 more |
| $3,050 | $283 | $3,050 | High-deductible G costs $1,567 more |
| $6,000 | $283 | $3,050 | High-deductible G costs $1,567 more |
Hypothetical scenarios by the Utah Retirement Income Data Desk. Uses the 2027 high deductible ($3,050) and the 2026 Part B deductible ($283) as the standard Plan G cost. Not a quote or a prediction of your costs. Excludes premiums for Part B and Part D and drug costs.
Under these hypothetical numbers, high-deductible G comes out ahead in any year with less than about $1,480 of Medicare-covered cost-sharing and costs more in a year with a hospital stay or surgery. The real question is how often you expect heavy years and whether you can pay one without strain.
How does it compare with a Medicare Advantage out-of-pocket limit?
Retirees often compare high-deductible G with Medicare Advantage because both cap what you pay. For 2027, CMS lets Medicare Advantage plans set an in-network out-of-pocket maximum of up to $9,850. Plans that choose a lower limit fall in the intermediate tier (up to $7,150) or the lower tier (up to $4,450). Our review of Utah's 2027 Medicare Advantage plans found a median in-network limit of $6,700.
The two work differently, though. A Medigap policy has no network, so any provider in the country who accepts Medicare can see you, and Original Medicare doesn't require prior authorization for most services. A Medicare Advantage plan's limit applies to its network, and plans may use referrals and prior authorization. Many Advantage plans charge $0 in plan premium, but that doesn't make them free: you still pay the Part B premium and the plan's copays. Neither option is right for everyone. See our Medicare Advantage vs. Medigap guide for that larger choice.
How does high-deductible G fit a retirement income plan?
Treat the deductible as money you set aside, not a surprise bill. Retirees who handle high-deductible G well usually do three things:
- Keep the deductible in cash. Keep about $3,050 in a savings account, money market fund or short Treasury bills, separate from investments you might have to sell in a down market. Our guide to where Utah retirees keep cash covers the options.
- Use an existing HSA for the bills, not the premium. IRS Publication 969 says Medigap premiums are not qualified HSA expenses, but Medicare deductibles, coinsurance and copays generally are. An HSA built up while you were working can cover the $3,050 tax-free. You cannot add new HSA money once you are on Medicare. More on that in our HSA and Medicare guide.
- Don't skip care to protect the deductible. This is the biggest risk with the plan, and it's a health risk as much as a financial one. The Medicare Annual Wellness Visit and most preventive services have no cost under Original Medicare when your provider accepts assignment, so you don't touch the deductible to use them.
Can you switch to high-deductible G later in Utah?
Sometimes. Utah Code § 31A-22-620, amended in 2025, gives Medigap policyholders a 60-day window each year starting on their birthday. During it you can move to a "comparable or lower tier" plan with the same insurer without medical underwriting. The law doesn't define "comparable or lower tier," so ask your insurer in writing whether it treats high-deductible G as qualifying. Changing companies, or moving from high-deductible G back to standard G, can mean answering health questions and being declined. Details are in our Utah birthday rule guide.
A this-month checklist
- Pull real Utah rates for standard Plan G and high-deductible G at medigap.utah.gov for your age and ZIP code.
- Add up last year's Medicare-covered cost-sharing from your Medicare Summary Notices or your Medicare.gov account.
- Run the break-even: $2,767 ÷ annual premium savings. Recheck it once CMS announces the 2027 Part B deductible.
- Confirm you have $3,050 in cash or an HSA you could spend in January without selling investments.
- Ask how the company sets and raises rates (attained-age, issue-age or community rating). A low starting premium is not the same as a low lifetime premium.
- Review your Part D plan by December 7. Drug costs sit outside the Medigap deductible, and Annual Enrollment is the time to change drug plans.
We're an independent agency and we do not offer every plan available in Utah. We'll compare the premiums for your age and ZIP code, work out the break-even with your own numbers, and tell you when standard Plan G is the better fit. Call (435) 260-5156 or book a time. No pressure.
Book an appointment →Frequently asked questions
What is the high-deductible Plan G deductible for 2027?
$3,050 for calendar year 2027, effective January 1, 2027, according to the CMS announcement published in October 2026. It was $2,950 in 2026. CMS raises it each year by the change in the Consumer Price Index (CPI-U), and the increase used for 2027 was 3.40%, rounded to the nearest $10. The same $3,050 applies to the high-deductible versions of Plans F and J.
What counts toward the high-deductible Plan G deductible?
Medicare.gov says you must pay for Medicare-covered costs, meaning coinsurance, copayments and deductibles, up to the deductible amount before the policy pays anything. That includes the Part A hospital deductible and the Part B deductible. Your monthly premiums do not count toward it, and prescription drug costs under a separate Part D plan do not count toward it either; Part D has its own out-of-pocket limit, which CMS set at $2,400 for 2027.
Who can buy high-deductible Plan G in Utah?
People who are new to Medicare on or after January 1, 2020, which mainly means anyone who turned 65 on or after that date. CMS notes that the high-deductible version of Plan F is only sold to people who were eligible for Medicare before 2020. You also need Medicare Part A and Part B, and your premium and acceptance can depend on whether you buy during your six-month Medigap Open Enrollment Period or with a guaranteed issue right. Utah does not require insurers to sell Medigap to people under 65.
How many Utahns have high-deductible Plan G?
11,142 Utahns had high-deductible Plan G in 2024, 14.0% of the state's 79,785 Medicare Supplement members, according to the Utah Insurance Department's 2025 Health Insurance Market Report. That is up from 1 member in 2020, 6,383 in 2021, 7,950 in 2022 and 9,622 in 2023. Counting high-deductible Plans F and J too, about 33.2% of Utah Medigap members had a high-deductible plan in 2024.
Can I use my HSA to pay for high-deductible Plan G?
Partly. IRS Publication 969 says Medigap premiums are not qualified medical expenses for an HSA, so you cannot pay the monthly premium tax-free from the account. You can generally use an existing HSA balance tax-free for qualified medical expenses such as Medicare deductibles, coinsurance and copays, which are the costs that make up the high-deductible amount. You cannot make new HSA contributions once you are enrolled in Medicare.
Sources
- CMS — Deductible Amount for Medigap High Deductible Options F, G & J for Calendar Year 2027 (October 2026): cms.gov/files/document/cy-2027-medigap-high-deductible-options-fjg.pdf
- CMS — F, G & J Deductible Announcements (2010–2026 archive): cms.gov/medicare/health-drug-plans/medigap/f-g-j-deductible-announcements
- Medicare.gov — Compare Medigap Plan Benefits: medicare.gov/health-drug-plans/medigap/basics/compare-plan-benefits
- Medicare.gov — Medigap costs: medicare.gov/health-drug-plans/medigap/basics/costs
- Utah Insurance Department — 2025 Utah Health Insurance Market Report (2024 data): insurance.utah.gov/wp-content/uploads/2025HealthMarketReport.pdf
- Utah Insurance Department — 2024 Utah Health Insurance Market Report (2023 data): insurance.utah.gov/wp-content/uploads/2024HealthMarketReport.pdf (2021–2023 editions at the same path)
- Utah Insurance Department — Medigap insurance comparison: insurance.utah.gov/consumer/seniors/utah-medicare-supplement-medigap-insurance-comparison and rate tool medigap.utah.gov
- CMS — CY 2027 MOOP and cost-sharing limit calculations: cms.gov/files/zip/cy-2027-moop-cost-sharing-limit-calculations.zip
- CMS — Announcement of CY 2027 Medicare Advantage Capitation Rates and Part C and Part D Payment Policies (Part D out-of-pocket threshold): cms.gov/files/document/2027-announcement.pdf
- Medicare.gov — Medicare costs (2026 Part B deductible): medicare.gov/basics/costs/medicare-costs
- IRS — Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans: irs.gov/publications/p969
- Utah Code § 31A-22-620 — Medicare supplement insurance: le.utah.gov/xcode/Title31A/Chapter22/31A-22-S620.html
About this article. Written by the Utah Retirement Income Data Desk and reviewed by Brian Penner, Retirement income & long-term care planner. Educational only — not medical, financial, tax, or legal advice, and not a recommendation of any specific plan or insurer. The 2027 deductible is quoted from CMS's October 2026 announcement; Utah membership counts are as published by the Utah Insurance Department and cover commercial insured business only. Premium gaps and cost scenarios are hypothetical illustrations, not quotes, and the 2027 Part B deductible had not been announced when this was written. Medigap premiums vary by company, age, ZIP code and rating method and typically rise over time; no savings are guaranteed. Utah Retirement Income is a licensed independent insurance agency (NPN 16493717) and is not a government agency; we are not connected with or endorsed by Medicare, the Centers for Medicare & Medicaid Services, the State of Utah, or any government program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area; please contact Medicare.gov, 1-800-MEDICARE, or your State Health Insurance Assistance Program — in Utah, the Utah SHIP at (877) 424-4640 — to get information on all of your options. If you call or text us, you consent to be contacted at the number you provide about your options; message and data rates may apply, and you can opt out at any time by replying STOP.