Medicare Supplement Plan L is a cost-sharing policy that pays 75% of all your out-of-pocket Medicare expenses.

This affordable policy can go a long way in protecting your health and bank account.

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There are 10 Medicare Supplement Plans (Medigap) lettered A-N. Each plan covers a different set of financial gaps within Original Medicare.  Medigap Plan L covers six of these gaps at 75%.

What Does Medicare Supplement Plan L Cover?

As shown in the comparison chart below, Plan L shares cost on six of the nine gaps existing in Original Medicare.

Part A coinsurance –  Medicare Part A provides coverage up to 60 days of inpatient medical care in a hospital or treatment facility.  Without Medigap coverage, you’d be left paying the full amount after these benefits run out.  Medigap Plan L extends your coverage for one full year.  This is the only gap that Plan L covers in full. 

Part A deductible at 75% – The 2021 standard deductible for Part A is $1,484. Medigap Plan L pays 75% of this deductible, saving you $1,113 on this benefit alone. 

Part B coinsurance 75% – Medicare Part B covers all outpatient medical care such as office visits, testing, specialist ext.   Without Medigap coverage, you’ll pay 20% coinsurance for all outpatient medical care.  Medicare Supplement Plan L contributes 75% towards whatever amount is your patient responsibility. 

Blood (first 3 pints) 75% – This plan pays 75% for the first three pints of blood. 

Skilled Nursing 75% –  Original Medicare only provides coverage for the first 20 days of skilled nursing care. Without a Medigap policy, you’ll pay a daily coinsurance upwards of $200 per day every day after that.  Medigap Plan L also contributes 75% of this coinsurance cost. 

Out-of-Pocket Maximum for Financial Protection – One of the biggest benefits of enrolling in Medicare Supplement Plan L is the maximum out-of-pocket limit.   Plan L and Medigap Plan K are the only two Medigap options that have out-of-pocket maximums. All other policy options leave you exposed to potential catastrophic medical bills.   In 2021, the out-of-pocket maximum for Plan L is $3,110.

What Medigap Plan L Doesn’t Cover

Medicare Supplement Plan L covers all out-of-pocket costs except for the following:

Part B deducible – The standard Part B deductible in 2021 is $204.  As of January 2020, Medigap plans are no longer able to include this coverage. Therefore, all Medicare beneficiaries must pay the Part B deductible.

Part B excess charges –  Some states allow for care providers to the bill, you, the patient, up to 15% more than what’s covered by Medicare.  These are known as excess charges.  Plan L does not protect you against Part B excess charges. However, the out-of-pocket maximum still applies. 

Foreign Travel Exchange – Medigap Plan L does not include any foreign travel health insurance protection. Several supplement plans include foreign travel benefits after a $250 deductible.  If you’re considering some out-of-country travel in the upcoming year, we highly recommend you choose one of those other options. 

How Does Medicare Supplement Plan L Compare?

medigap-comparison-chart

Who Should Consider This Policy?

Cost-sharing plans fit all sorts of life circumstances.  However, Plan L will be particularly desirable for individuals with chronic health conditions but don’t want to pay the higher premiums for more comprehensive policies such as Plan F or Plan G

If you foresee using your Medicare benefits frequently in the upcoming year, then we strongly suggest exploring your options with Medigap Plan L.

Shopping Quotes & Carriers

Did you know that premium rates for the same policy can vary as much as 30% between carriers? It’s true. And it’s the reason why it is so important to shop and compare all the top carriers before you enroll.