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.
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?
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.