A group of retirees in the United States will need to adjust their medical bills in 2027. The Centers for Medicare and Medicaid Services (CMS) announced that the annual deductible for certain Medicare supplement policies will rise to $3,050, up from $2,950 established for 2026.
The change represents an extra $100 you will have to cover before your supplemental insurance starts paying certain medical expenses. But there is something you should be clear about: this is not a rise that will affect all people enrolled in Medicare.
The measure applies exclusively to the high-deductible versions of Medigap Plans F, G, and J. If you have another coverage option, this adjustment may not necessarily change your costs.
Which retirees will have to pay the $3,050 deductible?
According to the CMS announcement published in October 2026, the new deductible will take effect on January 1, 2027.
The amount applies to three specific Medigap options:
According to CMS, the increase is calculated based on the variation of the Consumer Price Index for All Urban Consumers (CPI-U). The adjustment considered between 2025 and 2026 was 3.40%.
What does paying a $3,050 deductible mean?
Here is the detail that can cause confusion.
Medigap is a supplemental insurance you can purchase to cover certain costs that Original Medicare, comprised of Parts A and B, does not fully pay.
When you choose a high-deductible version, you agree to pay upfront certain medical expenses out of pocket. In 2027, that limit will be $3,050 annually, not including the monthly insurance premiums.
Once you reach that amount, your policy will start covering the Medicare cost-sharing that the plan provides for the rest of the year.
There is an important caveat: if you have Plan G, the deductible you pay for Medicare Part B also counts toward reaching that $3,050. However, Plan G does not cover the Part B deductible by itself.
Is it worth keeping your plan or seeking another coverage?
The increase could lead you to reconsider whether it is really worth maintaining a high-deductible policy.
These options often have lower monthly premiums than traditional versions. The problem arises when you need frequent medical care: you could end up paying a substantial amount before receiving the supplemental benefits.
Before switching, review:
Don’t assume you’ll be able to change insurance whenever you want. Medigap enrollment rules depend on your situation and the state you live in.
If you need to compare options, you can consult Medicare.gov or request free guidance from your state’s SHIP program.
The $100 increase may seem manageable, but for someone living on a fixed retirement income with ongoing medical costs, every dollar counts. That’s why reviewing your coverage before the end of 2026 can help you avoid surprises when the new year begins.
