What Is the HDG Combo? The Medicare Strategy That Saves Thousands

High Deductible Plan G paired with ancillary coverage may be the smartest Medicare move you’ve never heard of.

If you’re turning 65 or already on a Medicare Supplement plan, chances are someone has told you to “just get Plan G.” It’s the most popular Medigap plan in the country, and for good reason — it covers nearly everything Medicare doesn’t.

But what if there were a smarter way to get that same coverage for significantly less money? And what if that approach actually protected you from the rate increases that frustrate Plan G holders year after year?

There is. We call it the HDG Combo — and it’s one of the best-kept secrets in Medicare planning.

In This Article

1. What Is High Deductible Plan G?
2. What Makes It a “Combo”?
3. The Math: HDG Combo vs. Standard Plan G
4. The Rate Increase Advantage
5. Is the HDG Combo Right for You?
6. How to Get Started

What Is High Deductible Plan G?

High Deductible Plan G (sometimes called HDG or HD Plan G) is a Medicare Supplement plan that provides the exact same benefits as standard Medigap Plan G — with one key difference: it comes with a much lower monthly premium in exchange for an annual deductible.

For 2026, that deductible is $2,950. This means you’ll pay the first $2,950 of Medicare-covered costs out of pocket each year before the plan starts paying. After you meet the deductible, HDG covers everything exactly like standard Plan G — 100% of Medicare Part A and Part B gaps.

Key point: High Deductible Plan G and standard Plan G cover the same things. Same doctors. Same hospitals. Same benefits. The only difference is how you pay — lower monthly premiums with a deductible, or higher monthly premiums with little to no out-of-pocket costs.

Here’s what HDG covers once you meet the deductible (identical to Plan G):

• Medicare Part A hospital costs and coinsurance
• Part B coinsurance and copayments
• First three pints of blood
• Part A hospice care coinsurance
• Skilled nursing facility coinsurance
• Part A deductible
• Part B excess charges
• 80% of foreign travel emergency care

And because this is a Medigap plan — not Medicare Advantage — there are no network restrictions. Any doctor or hospital that accepts Medicare accepts your plan. Period.

If you’d like a deeper look at how High Deductible Plan G works on its own, we’ve written a detailed guide on our High Deductible Plan G page.

What Makes It a “Combo”?

High Deductible Plan G on its own is already a strong plan. But the real power comes when you pair it with strategic ancillary coverage that helps fill in the deductible gap. That’s what turns HDG into the HDG Combo.

Here’s what we typically include in an HDG Combo strategy:

Hospital Indemnity Insurance

This is the cornerstone of the Combo. Hospital indemnity pays you a fixed cash benefit — typically $1,000 to $3,000 — when you’re admitted to the hospital. The money goes directly to you, not the hospital, and you can use it for anything: your HDG deductible, prescriptions, groceries, whatever you need.

Hospital indemnity also covers observation stays, which is a significant advantage. Over 2 million Medicare beneficiaries each year are placed under “observation” rather than formally admitted, which changes how Medicare covers the stay. Hospital indemnity bridges that gap.

Typical cost: $22–$38/month, depending on your age and benefit level.

Cancer Insurance

A cancer diagnosis is one of the most financially impactful health events in retirement. Cancer insurance provides a separate lump-sum or ongoing benefit specifically triggered by a cancer diagnosis. This covers treatment costs, travel to specialists, and out-of-pocket expenses that would otherwise hit your deductible hard.

Typical cost: $23–$30/month.

Short-Term Care Coverage (Optional Enhancement)

If you need help recovering after a hospital stay or illness — think home health aides, assistance with daily activities, or transitional care — short-term care insurance provides benefits that Medicare’s limited skilled nursing coverage doesn’t fully address.

Typical cost: $35–$75/month, depending on benefit period and amount. Because of the wider price range, we treat short-term care as an optional enhancement to the core HDG Combo rather than a standard inclusion. For some clients it’s a perfect fit; for others, the core combo of HDG + hospital indemnity + cancer coverage is plenty.

The Combo in a nutshell: You’re taking the premium savings from High Deductible Plan G and reinvesting a portion of those savings into targeted coverage that protects you in the specific scenarios where you’d actually hit that deductible. The result? Lower total costs AND strong protection — with the flexibility to add short-term care coverage if it makes sense for your situation.

The Math: HDG Combo vs. Standard Plan G

Let’s look at real numbers. The following comparison uses average premiums for a 65-year-old in Michigan, though rates vary by carrier, location, and health profile. This shows the core HDG Combo (HDG + hospital indemnity + cancer insurance).

Monthly Cost	Standard Plan G	HDG Combo
Medicare Supplement premium	$150/month	$50/month (HDG)
Hospital indemnity	—	$30/month
Cancer insurance	—	$26/month
Total monthly cost	$150/month	$106/month
Annual premium cost	$1,800/year	$1,272/year
Year 1 savings	$528

That’s over $500 saved in Year 1 — and that’s just the beginning. The real power of the HDG Combo reveals itself over time.

“But what about the deductible?” you might ask. Fair question. In a year where you have a hospital stay and hit the full $2,950 deductible, your hospital indemnity benefit would reimburse a significant portion of that cost. And even in that worst-case scenario, your total annual cost (premiums + deductible − indemnity benefit) is still comparable to what you’d pay with standard Plan G.

The important thing to understand: most Medicare beneficiaries don’t hit the full deductible in a typical year. For the majority of HDG holders, the deductible is a safety net that rarely gets fully used — meaning most years, you’re simply pocketing the premium savings.

Want to add short-term care coverage? At $35–$75/month, adding STC brings your total closer to — or in some cases above — the Plan G premium. But here’s the key difference: with the HDG Combo plus STC, you’re getting more total coverage than Plan G alone provides. You’re not just paying for Medigap — you’re building a layered protection strategy that covers hospital stays, cancer, AND recovery care. Plan G doesn’t do any of that.

The Rate Increase Advantage (This Is the Big One)

If you’ve been on a Medicare Supplement plan for more than a year, you know the drill. Sometime around your policy anniversary, an envelope arrives. You open it with a knot in your stomach. Your premium is going up — again.

Rate increases are a fact of life with Medigap plans. Medical costs rise, and premiums follow. This happens on ALL Medicare Supplement plans, including HDG. We won’t pretend otherwise.

But here’s where the HDG Combo has a massive structural advantage that most people — and most agents — completely overlook.

With standard Plan G, your entire $150/month premium is subject to rate increases. Every dollar of it goes up when the carrier raises rates.

With the HDG Combo, only the HDG portion ($50/month) is subject to Medigap rate increases. Your hospital indemnity and cancer insurance premiums are locked in — they don’t increase the same way. That means $56 of your $106 monthly combo cost is essentially rate-increase-proof.

Let’s see what a 6% annual Medigap rate increase looks like over time:

Year	Plan G Monthly	HDG Combo Monthly	Monthly Savings
Year 1	$150	$106	$44
Year 3	$169	$112	$57
Year 5	$201	$123	$78
Year 7	$226	$131	$95
Year 10	$253	$146	$107

Read that Year 10 line carefully. The Plan G holder is now paying $253 per month. The HDG Combo holder? Just $146 per month — that’s still less than what a brand-new Plan G costs today.

The savings gap doesn’t just hold steady — it accelerates. In Year 1 you save $44/month. By Year 10 you’re saving $107/month. That’s because Plan G’s rate increases compound on the full $150, while the HDG Combo’s increases only apply to the $50 HDG portion. The ancillary premiums stay flat, acting as an anchor that keeps your total cost from climbing.

Cumulative savings over 10 years: approximately $9,200.

But it’s not just about the dollars. Think about the experience of getting that annual rate increase letter.

The Plan G holder opens the envelope: “Your premium is increasing by $9.00 per month.” That’s $108 more per year. On a fixed income, that stings. And it happens every year, on the full amount.

The HDG Combo holder opens the same letter: “Your premium is increasing by $3.00 per month.” That’s just $36 more per year — because the increase only applies to the HDG portion. Your hospital indemnity and cancer premiums? Unchanged.

That’s a $72/year difference in rate increases alone. And it compounds. Every single year, the Plan G holder absorbs a bigger hit while the HDG Combo holder barely feels it.

That difference in stress is the hidden value of the HDG Combo. It’s not just about saving money — it’s about not spending half the year worrying about something that’s supposed to give you peace of mind.

Is the HDG Combo Right for You?

The HDG Combo is a powerful strategy, but it’s not for everyone. Here’s an honest look at who benefits most — and who might be better served by standard Plan G.

The HDG Combo may be a great fit if you:

• Want to lower your monthly Medicare costs without sacrificing the security of a Medigap plan
• Are in reasonably good health and don’t anticipate frequent hospitalizations
• Think long-term about your Medicare costs — not just this year, but 5, 10, 15 years from now
• Want to minimize the impact of rate increases — with the HDG Combo, more than half your monthly cost is rate-increase-proof
• Value keeping your doctors and want no network restrictions
• Have some savings to cover the deductible in a worst-case year (even though ancillary products offset much of it)
• Are newly eligible for Medicare — the earlier you start with HDG, the more you save over time

Standard Plan G might be better if you:

• Have a serious ongoing health condition that results in frequent hospitalizations or high annual medical costs
• Strongly prefer zero out-of-pocket costs and are willing to pay higher premiums for that certainty
• Are not comfortable with any deductible, even with ancillary products backing it up

Important: We will never push you toward the HDG Combo — or any plan — if it’s not the right fit for your situation. Our job is to lay out ALL your options with honest numbers and help you make the decision that’s best for you.

One more thing worth noting: if you’re currently on standard Plan G and considering a switch, underwriting may apply depending on your state and health status. Michigan does not have a guaranteed-issue right to switch Medigap plans outside of your initial enrollment period, so this is something we’d evaluate together. In some cases, starting fresh with the HDG Combo during your initial Medigap open enrollment period (when you first turn 65) is the ideal path — which is why we encourage people approaching Medicare to explore this strategy early.

Ready to See If the HDG Combo Could Save You Thousands?

Every person’s Medicare situation is different. Your health, your medications, your doctors, your comfort level — it all matters. That’s why we offer a completely free, no-pressure Medicare strategy session where we run your personalized numbers and walk you through every option.

No sales pitch. No obligation. Just honest math and expert guidance from a team that specializes in this strategy.

Book Your Free Strategy Session

Or call us directly: (248) 871-7756

About Giardini Medicare

Giardini Medicare is a Medicare insurance agency that helps people navigate Medicare Advantage, Medigap, Part D, and ancillary insurance products. We specialize in building personalized Medicare strategies — including the HDG Combo — that put our clients’ long-term financial wellbeing first.

We’re based in Michigan and serve clients who want more than a one-size-fits-all recommendation. If you’re turning 65, exploring your Medicare options, or frustrated with your current plan’s rate increases, we’d love to help.

Giardini Medicare — Your Transition to Medicare Team.

gmedicareteam.com  |  (248) 871-7756  |  info@gmedicareteam.com