The HDG Combo Strategy Explained: A Smarter Way to Do Medicare

If you’ve been researching Medicare supplements, you’ve probably heard of Plan G and Plan N. They’re the two most popular Medigap plans in the country, and for good reason — they both offer strong coverage.

But there’s a third option that most agents won’t mention. Not because it’s bad — but because it takes more time to explain, requires a different way of thinking, and frankly, not every agent understands it well enough to present it.

It’s called the HDG Combo — and it’s the strategy being embraced even more than we thought possible when we introduced it!

What Is High-Deductible Plan G?

Let’s start with the basics. High-Deductible Plan G (HDG) covers the exact same things as regular Plan G. Same benefits. Same standardized coverage. The difference is that you have an annual deductible — $2,950 in 2026 — that you pay out of pocket before the plan kicks in and covers everything at 100%.

In exchange for that deductible, your monthly premium is dramatically lower. We’re talking $30–$50 a month for many people, compared to $150–$250+ for standard Plan G depending on your age and state.

The math is simple: you pay a lot less every single month, and in a healthy year where you don’t hit that deductible, you save thousands. In a bad year where you max out the deductible, you’re still capped at $2,950 — and after that, everything is covered just like regular Plan G.

So What Makes It a “Combo”?

Here’s where it gets interesting.

HDG by itself is a solid plan for healthy people who want low premiums. But we take it a step further by pairing it with additional coverage that fills in the gaps and protects against the big financial hits that Medicare doesn’t cover regardless of which supplement you choose. Things such as lost income due to illness, travel costs incurred during treatments, hiring caregivers perhaps, the cost of wigs and/or clothing – all examples of additional expenses that people don’t often plan for.

The HDG Combo typically includes:

Hospital Indemnity Insurance – Pays you a fixed daily cash benefit when you’re admitted to a hospital. This helps offset the out-of-pocket costs you’d face under the HDG deductible during a hospital stay. Think of it as a shock absorber.

Cancer Insurance – A lump sum paid directly to you upon diagnosis. $5,000 to $75,000. Has nothing to do with Medicare — it’s cash in your pocket when you need it most. Neither Plan G nor Plan N offers this.

Heart Attack & Stroke Insurance – Same concept. Lump sum on diagnosis. Heart disease is the #1 killer in the country.

Short-Term Care Insurance – If you ever need help with daily living – assisted living, home care, custodial care – Medicare doesn’t cover it. Period. Not on Plan G. Not on Plan N. Not on HDG. Short-term care insurance fills that gap, and it kicks in on day one with no prior hospital stay required.

The Rate Increase Advantage

This is the part that gets people’s attention.

Supplement premiums go up every year. That’s just reality. But here’s the pattern we’ve seen consistently over years of real client data: HDG rate increases tend to run about half of what Plan G and Plan N experience. And, half of a much smaller number. 

Expecting a 10% increase on Plan G this year? Plan on about 5% for HDG. Seeing 15%? Expect around 7.5%.

The exact percentages change year to year — don’t get hung up on specific numbers. What doesn’t change is the ratio. HDG consistently increases at roughly half the rate of the traditional plans.

And the additional coverages? Cancer insurance, hospital indemnity, heart attack and stroke — many of these are issue-age rated, meaning your premium is based on the age you were when you bought the policy. The increases on those are minimal compared to Medigap supplements.

So over 5, 10, 15 years, the HDG Combo client’s total insurance spend grows at a much slower pace than someone on Plan G or Plan N. We’ve seen real clients save over $10,000 in premiums over a 5-year period compared to what they would have paid on Plan N.

Who Is This For?

The HDG Combo isn’t for everyone. Let’s be upfront about that.

It’s a great fit if:

• You’re generally healthy and don’t anticipate heavy medical usage
• You’re comfortable with the idea of a $2,950 annual deductible in exchange for dramatically lower premiums
• You care about long-term premium sustainability, not just this year’s cost
• You want extra protection against the big stuff — cancer, heart attacks, strokes, long-term care — that no Medigap plan covers (costs of travel, lost wages, etc – ALL Medigap plans WILL cover treatments)
• You’re the kind of person who thinks strategically about money

It might not be the best fit if:

• You have ongoing chronic conditions requiring frequent medical care
• The idea of any out-of-pocket costs causes you significant anxiety
• You’d rather pay more monthly and never think about it

And that’s okay. Plan G exists for a reason. Plan N exists for a reason. The right answer depends on who you are, what your health looks like, and how you think about risk and money.

The Bottom Line

The HDG Combo isn’t a gimmick. It’s not a loophole. It’s a thoughtful strategy that pairs a low-premium, high-deductible supplement with targeted additional coverage to create a package that’s more comprehensive AND more affordable over time than traditional Plan G or Plan N alone.

Most agents won’t walk you through this because it takes time, it requires understanding multiple product types, and it doesn’t fit the “just pick Plan G” script. But we believe you deserve to see all your options — not just the easy ones.

Want to run the numbers for yourself? Head to MedigapMath.com and compare the real costs. Then check out MyCancerIns.com and IWantSTC.com to see what the additional coverages would cost at your age.

Or just call us. We’ll walk you through the whole thing.