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As the name suggests, Medigap High Deductible Plan F has the same coverage as Medigap Plan F, after you pay the annual deductible amount ($2,340 in 2020). Once you meet this deductible, you ‘ll have the same coverage as Plan F, shown in the list above. People who have come from high-deductible or health savings account qualified plans in their workplaces are often interested in this plan.
First, Medicare first pays its share then you agree to pay the first $2,340 of of your share (in 2020). That is your maximum out-of-pocket on High Deductible Plan F.
For example if you had a hospital stay early in the year. Medicare Part A will pay for the inpatient hospital stay except for the $1,408 Part A deductible that you will owe. Since you have a $2,340 deductible on your supplement plan, you will pay the $1,408. That money applies against the $2,300 that you are responsible for. If you have other charges throughout the year, you will pay your share only until you have reached the $2,340 limit.
Thereafter this plan works just like regular Plan F. It will cover 100% of your share on all Part A and B services.
Below is a chart of benefits for Plan F. The way to think about this is that everything below is correct AFTER you pay the first $2,340. Each year, Medicare adjusts this deductible, so it goes up a bit over time.
Why would anyone opt for a plan with a $2,340 deductible?
The main reason some people prefer High-Deductible Plan F is to have lower premiums. This is okay with people who have a significant amount of retirement savings. If you can afford to spend a little out of pocket in a year when you do use your plan then the High Deductible Plan F may work for you.
In our experience, many people who uses High Deductible Plan F eventually end up not liking it. They feel that every time the go to the doctor or have any type of medical service they are getting nickled-and-dimed because Medicare pays 80% and they get a bill for the other 20% (up until they meet the $2,340 deductible).