Most senior citizens are enrolled in an Original Medicare Policy, either Part A or Part B. This means they are aware of the enormous out of pocket costs that accompany such policies as they do not necessarily pay for all of your medical expenses. A good way around this is usually through enrollment in Medical Supplement Plans. These are medical covers offered by private institutions that serve to fill the gaps left behind by Medicare Policies. It is for this reason that they are also called Medigap Policies.
There are 10 different Medigap Plans, each coming with its own coverage and benefits. These perks are however standardized and constant across all states. The premiums are what varies from one provider to the next depending on several factors. One of these Medicare Supplement Policies is the Medigap Plan L. Though this plan is not the best when it comes to covering the gaps left behind by original Medicare Policies, it has one benefits not present in the other plans, a limit on your out of pocket spending.
It is also a cheaper alternative since it mostly comes with the basic benefits found in most of the Medicare Supplement Policies, and only partly covers some of the other costs.
Medigap Plan L Coverage
The Medigap Plan L policy only fully covers one benefit, the Original Medicare Part A hospital costs and coinsurance costs up to 365 days after the benefits of the original Medicare have been exhausted.
Medicare Supplement Plan L Benefits
Medicare Supplement Plans 2019 L works on more of a shared cost approach. It, therefore, steps in to pay for the costs left behind by the Original Medicare policies. It covers 75% of these expenses which usually includes coinsurance and copayments. This usually makes it more of a budget-friendly option for individuals that are looking for assistance with certain medical costs without necessarily having to fork out big premiums. You can also not use any of the Medicare Supplement Plans if you have Medicare Part C, the advantage plan.
Difference Between Medigap Plan L and Plan K
In the following benefits, Medigap Plan L only covers 75% while Plan K covers 50%
- Deductibles for Medicare Part A
- The first 3 pints of blood
- Skilled Nursing Facility Coinsurance costs
- Hospice care coinsurance or copayments for Medicare Part A
- Medicare Part B Copayments and coinsurance
Medigap Plan L does not cover beneficiaries for overseas travel. It also doesn’t cover any of the Medicare Part B excess charges.
The Medigap Plan L out of pocket limit is around $2650, this may vary depending on your state and insurance provider. However, once you meet this limit and your yearly deductible, the plan covers you for 100% of your approved services until the end of the calendar year. This is quite beneficial since the Original Medicare Part A and B do not come with a yearly out of pocket spending limit. This usually leaves a person covering quite the bill, especially if they are prone to medical emergencies.