What Is the 2027 Medigap High-Deductible Amount?

The 2027 annual deductible for high-deductible Medigap Plans F, G and J is $3,050. According to the CMS October 2026 announcement, the new amount takes effect January 1, 2027, and it represents the annual out-of-pocket expenses, excluding premiums, that a beneficiary must pay before these policies begin paying benefits.

Put another way: if your client buys a high-deductible Plan G for 2027, that client pays the first $3,050 of covered Medicare cost-sharing out of pocket in the calendar year. After that, the policy pays its covered benefits for the rest of the year. The monthly premium is a separate cost and does not count toward the deductible.

If a client asks, “How much is the Medigap high deductible next year?” the short answer is $3,050. If a client asks, “What is the deductible on high-deductible Plan G in 2027?” the answer is the same, because CMS publishes a single amount for all three high-deductible options.

The 2026 figure of $2,950 appears in Medicare.gov’s Choosing a Medigap Policy booklet, which describes the amount a client must pay before a high-deductible Plan F or G pays anything.

How CMS Sets the Medigap High-Deductible Number

The deductible is not a carrier decision or a negotiated rate. It follows a formula in federal law. Per CMS, section 1882(p)(11)(C)(i) of the Social Security Act prescribed a deductible of $1,500 for 1998 and 1999 and directed that the amount increase each following year by the percentage increase in the CPI-U, all items, U.S. city average.

For 2027, CMS states that the applicable CPI-U increase from 2025 to 2026 is 3.40%. After rounding to the nearest $10, as the statute requires, the result is $3,050. CMS updates the figure each year after the Bureau of Labor Statistics releases the August CPI-U data, which generally happens in mid-September.

That is why the change is predictable. Brokers who know the formula can explain to clients that the increase tracks inflation rather than a particular carrier’s pricing decision. It also means the amount is the same no matter which insurance company sells the policy.

What about Plans K and L?

Plans K and L do not use a deductible. They use annual out-of-pocket limits that CMS announces separately. CMS publishes those on its K and L out-of-pocket limits announcement page; confirm the current-year amounts there before quoting them, because they are calculated on a different formula than the high-deductible figure.

Who Can Buy a High-Deductible Medigap Plan

High-deductible options are narrower than many clients assume. The CMS page and Medicare.gov describe the following rules:

Medigap policies are standardized, meaning policies with the same letter offer the same basic benefits no matter where the client lives or which company sells the policy, according to Medicare.gov. Price is the main difference between carriers. The exception is a small group of states: Medicare.gov states that in Massachusetts, Minnesota and Wisconsin, Medigap policies are standardized in a different way. If you write business in those states, do not assume the letter-plan framework applies.

How the Medigap High Deductible Works in Practice

The high-deductible structure works like this. The client buys a Medigap Plan G with the high-deductible option and typically pays a lower monthly premium than a standard Plan G. In return, the client pays the first $3,050 of covered Medicare cost-sharing in the calendar year. Once that amount is met, the plan pays covered benefits for the rest of that year, as Medicare.gov describes.

An illustration (not a quote)

Suppose a client with a 2027 high-deductible Plan G has a hospital stay and related Medicare-covered cost-sharing that adds up to well over $3,050 during the year. The client is responsible for the first $3,050. After that, the plan pays covered costs for the remainder of the year. A second client who has only routine care and never reaches $3,050 pays out of pocket for those costs and still pays the plan premium all year. This is a hypothetical illustration only; actual premiums, covered costs and benefits vary by carrier, state and individual circumstances.

Questions to ask before recommending it

• Can the client absorb a $3,050 out-of-pocket exposure in a single year without financial hardship?
• What is the premium difference between the standard Plan G and the high-deductible Plan G from the carriers available in the client’s state?
• Does the client have a history of frequent Medicare-covered services that would likely trigger the deductible?
• Is the client’s eligibility date on or after January 1, 2020, which determines whether Plan G or Plan F is the relevant letter plan?
• Does the client have other coverage, such as retiree or Medicaid benefits, that changes the picture?

The right answer is client-specific. Do not frame a high-deductible plan as a “cheaper” option without showing the full-year cost picture: premium plus the possible deductible exposure.

Why Medigap Matters During AEP 2026

The Annual Enrollment Period runs October 15 through December 7, but AEP is a Medicare Advantage and Part D event. Medigap does not have an annual open enrollment window. That is exactly why this season creates confusion: clients who are unhappy with a 2027 Medicare Advantage change often assume they can simply “switch to a supplement” during AEP, and in many cases they cannot do so without underwriting.

The 2027 market is giving them reasons to ask. Our recent coverage has tracked widespread Medicare Advantage benefit reductions for 2027 and Molina Healthcare’s exit from Medicare Advantage in Connecticut, Mississippi and Nevada. Clients affected by these changes may be weighing a return to Original Medicare with a supplement. For a full side-by-side of the two approaches, see our Medicare Advantage vs. Medicare Supplement 2027 broker comparison.

What the Medicare Advantage Open Enrollment Period adds

After AEP closes, members already in a Medicare Advantage Plan have the Medicare Advantage Open Enrollment Period from January 1 through March 31. During that time they can switch to a different Medicare Advantage Plan or return to Original Medicare, according to Medicare & You. A client who returns to Original Medicare and wants a Medigap policy still has to qualify for one unless a guaranteed issue right or state rule applies.

Guaranteed Issue, Open Enrollment and Trial Rights

Brokers should be able to explain three Medigap protections in plain language.

1. The Medigap Open Enrollment Period

Under federal law, there is a six-month Medigap Open Enrollment Period that starts the first month a person has Medicare Part B and is 65 or older. During this window, an insurance company cannot refuse to sell any of the Medigap policies it offers and cannot use medical underwriting or charge more because of health problems, per Medicare.gov. It is one-time and does not repeat every year. Some states have additional open enrollment rights.

2. Guaranteed issue when a Medicare Advantage plan leaves

Medicare.gov lists several situations in which a person with a Medicare Advantage Plan has a guaranteed issue right: the plan is leaving Medicare, the plan stops giving care in the person’s area, the person moves out of the service area, or the plan’s network has a significant change. The person only has this right if switching to Original Medicare rather than joining another Medicare Advantage Plan. The plans available under this right are Medigap Plan A, B, C, D, F or G sold in the state, subject to the C and F eligibility limits for people new to Medicare on or after January 1, 2020.

On timing, Medicare.gov states the person can apply 60 days before the date Medicare Advantage coverage ends if choosing to leave, or by the date in the plan termination notice, and no more than 63 days after the Medicare Advantage coverage ends. A Medigap policy cannot start until the Medicare Advantage coverage ends.

3. The trial right

Medicare.gov explains that if someone drops a Medigap policy to join a Medicare Advantage Plan for the first time, there is a single 12-month trial right period to get the policy back if the same insurance company still sells it. If it is not available, the person may be able to buy certain Medigap policies depending on state law and whether they are new to Medicare on or after January 1, 2020.

Compliance Guardrails for Medigap Conversations

• Do not sell Medigap to someone who is staying in Medicare Advantage. Medicare.gov states that if a person is in a Medicare Advantage Plan, it is illegal for anyone to sell a Medigap policy unless the person is switching back to Original Medicare. See Understanding Medicare Advantage Plans.
• Do not guarantee approval. Outside a protected window, a carrier may underwrite and may decline or charge more. Never promise acceptance or a specific premium.
• Do not call a high-deductible plan “cheaper” without the full-year picture. Show premium plus the $3,050 deductible exposure.
• Separate Medigap from Medicare Advantage and Part D marketing. The CMS marketing rules, including the Scope of Appointment requirements we covered in our 2027 SOA rules guide, apply to Medicare Advantage and Part D plan marketing. Medigap is regulated primarily at the state level, so follow your state Department of Insurance rules and carrier requirements, and keep records of your needs analysis.
• Know your state. Massachusetts, Minnesota and Wisconsin standardize Medigap differently, and high-deductible options are offered only in some states.

For general standards on Medicare Supplement regulation, brokers can also review resources from the National Association of Insurance Commissioners (NAIC) and their own state Department of Insurance.

Common Broker Mistakes With Medigap High-Deductible Plans

• Quoting last year’s deductible. The 2026 amount was $2,950. The 2027 amount is $3,050. Update every quote sheet, script and email template.
• Treating the deductible like a premium credit. The deductible is exposure, not savings. Clients need the full-year view.
• Offering Plan F to people who cannot buy it. Anyone new to Medicare on or after January 1, 2020 cannot buy Plans C or F.
• Missing the 63-day guaranteed issue limit. Document the dates the Medicare Advantage coverage ends and the date the client applied.
• Assuming AEP opens a Medigap window. It does not. Medigap protections come from the Open Enrollment Period, guaranteed issue rights, trial rights or state law.
• Skipping the state check. Availability of high-deductible options and extra enrollment rights depends on the state.

How a Medigap Book Fits Into Broker Growth

Medigap is a relationship product. Clients who understand their Original Medicare cost-sharing tend to come back every year for plan, Part D and household questions, which supports a stable renewal base. We explored the economics of that in our guide to residual income as a Medicare broker. This year’s Medicare Advantage disruption gives agents a reason to reach out to existing clients before AEP, document the conversation and make sure each client is in the right type of coverage.

The brokers who will do this well are not the ones who chase the lowest premium. They are the ones who can explain a $3,050 deductible, a 63-day application window and a state-specific rule in the same conversation, calmly and accurately.

How Affordable Care Agents Supports Medicare Brokers

Affordable Care Agents is a national FMO, IMO and insurance brokerage that helps licensed professionals build Medicare and ACA books with the right tools around them. For brokers handling Medigap and Medicare Advantage questions this AEP, that includes:

• Carrier contracting across Medicare Advantage, Medicare Supplement, Part D and ancillary lines so you can serve a client’s whole situation
• AHIP 2027 discount certification through the OIM partnership so you are certified before you start selling
• Compliance education on CMS marketing rules, SOA requirements and state-level Medigap considerations
• Back-office and enrollment support during the busiest weeks of the year
• Broker development and training to help new and experienced agents grow a durable Medicare book

Frequently Asked Questions