The Truth About Medicare Advantage vs. Medicare Supplement Plans

And Why Most Agents Don’t Tell You About High-Deductible Plan G

When it comes to Medicare coverage, most seniors assume that the advisor sitting across from them is presenting every option fairly. Unfortunately, that is not always the case. Many agents tend to promote Medicare Advantage plans as the “best option,” but very few explain why—and even fewer discuss high-deductible Medicare Supplement Plan G, which for many seniors is a dramatically better financial choice.

Here are the facts most consumers never hear.

The Hidden Reality Behind Medicare Advantage Plans

Most Medicare Advantage plans are promoted with big promises:

“Zero premium!”, “Free dental and vision!”, “Extra benefits you don’t get with Medicare!”

But here’s what most agents leave out. Medicare Advantage has copays, deductibles, and maximum out-of-pocket limits. Just like Original Medicare, Advantage plans come with cost-sharing. But the real concern is exposure. In 2026, the maximum in-network out-of-pocket cost can be up to $9,850 and for out-of-network care, that limit can be as high as $14,750.

Those are massive potential bills for a retired senior on a fixed income.

Your doctor is never guaranteed.

Medicare Advantage plans require you to stay within a network and can discontinue providers every year. They can also change drug formularies annually and the plans are not guaranteed renewable year to year

You may be healthy today, but if your doctor leaves the network, your plan benefits change, or your health declines, your options can become limited very quickly.

The reality is that Agents earn higher commissions for Medicare Advantage sales.

This is the part no one likes to talk about. Medicare Advantage enrollments typically pay a Much higher commissions than Medicare Supplement policies. Is it any surprise these plans get pushed aggressively?

This is why Many Consumers Choose Original Medicare with a Supplement Instead

Because of the restrictions, the uncertainty of provider participation, and the large possible out-of-pocket exposure, many seniors choose Original Medicare paired with a Medicare Supplement

This combination provides the broadest choice of doctors, predictable costs, and the highest consumer protection.

Agents will tell you that Plan G is the best option and for many, it is. But is it always the most logical choice? Not necessarily.

Let’s take a closer look at the difference between a High-Deductible Plan G versus a Standard Plan G

Why “the best” may not be the smartest

A High-Deductible Plan G provides the same medical coverage as a regular Plan G. The difference is how you pay for it.

Instead of paying a high monthly premium you pay a much lower premium and cover the first part of your annual Medicare-approved costs (your deductible)

How the deductibles compare. With a Standard Plan G: You pay only the Medicare Part B deductible of $257 for 2025. With a High-Deductible Plan G you pay the first $2,870 of Medicare-approved costs. That creates an out-of-pocket difference of Difference: $2,613

Now here’s what changes everything. The Premium Difference Is Substantial.

High-deductible premiums are often 50%–70% lower than regular Plan G premiums. For Example, A Standard Plan G may cost $180 per month, and the High-Deductible Plan G may cost $50 per month. This creates savings of $130 per month or $1,560 per year

So, if the deductible difference is $2,613 and you save roughly $1,500 annually, most of the deductible is being paid with money you save anyway.

Many consumers don’t realize they are already spending the deductible in advance every year in the form of higher premiums.

Here are some Key Advantages of High-Deductible Plan G

Full protection after the deductible.

Once the deductible is met the plan pays 100% of everything a regular Plan G covers. There are no surprises and no hidden copays

The only difference is how you get there. If you rarely go to the doctor, why pay thousands for insurance you don't use?

The high-deductible plan G provides a much lower premium, High-value catastrophic protection, and excellent coverage for unexpected events

The high-deductible plan G has more stable premiums over time

The Regular Plan G is known for large annual rate increases. The high-deductible plan G historically has smaller increases and greater long-term stability

This is because the claims exposure per member is lower.

The high-deductible plan also works perfectly with HSA funds

If the client has an existing HSA from previous employment, they can use HSA dollars to pay the deductible. They can use HSA funds for premiums after age 65. This makes High-deductible plan G even more attractive.

It is Ideal for those transitioning from high-deductible employer plans

So Why Don’t Most Agents Present High-Deductible Plan G?

The answer is simple, Commission.

Medicare Supplement commissions are based on a percentage of the premium.

A regular Plan G premium is higher, so the agent earns more.  A High-Deductible Plan G premium is much lower, so the agent earns far less

In fact, it can take THREE high-deductible Plan G clients to equal the commission from ONE regular Plan G sale.

So many agents avoid discussing high-deductible plan G altogether. It isn’t because it’s a bad product. It’s because it’s a bad payday.

Let’s look at the Financial Logic Behind Choosing High-Deductible Plan G Instead of Standard Plan G

Even if someone wants the most comprehensive Medicare Supplement coverage available, it’s important to step back and look at the math.

A standard Plan G forces consumers to pay significantly higher premiums, often $1,500 or more per year, just to avoid a deductible difference of about $2,613.

Put simply, why would anyone spend $1,500 every year to insure a possible $2,613 loss?

That math doesn’t make sense, and this brings us to the golden rule of smart insurance planning:

Insurance should protect you against big losses—not small ones.

You insure your home because a total loss could cost hundreds of thousands of dollars. You insure your car because an accident could be financially devastating. You insure your life because your family needs protection.

But you don’t buy insurance to cover minor expenses that you could easily pay out-of-pocket. That’s not what insurance is for.

A smart shopper would Redirect Premium Dollars to Where They Actually Matter

If a client wants to spend more money on insurance for better protection, the question becomes Where should those dollars go to provide the greatest financial benefit?

Should they spend $1,500 per year to avoid a $2,613 deductible?

Or should that $1,500 be redirected to cover the real financial risks seniors face, risks that can cost tens of thousands or even hundreds of thousands of dollars?

For example:

Long-Term Care and Nursing Home Costs. A nursing home can cost $9,000–$12,000 per month. Home health care can cost $5,000–$7,000 per month.

Redirecting $1,500 per year toward coverage for these expenses makes far more financial sense.