Medigap Plan L not only covers a percentage of your out-of-pocket expenses left over by Original Medicare, but it also features an annual out-of-pocket maximum limit of $2,780 (in 2019). Plan L is only one of two Medicare Supplement insurance policies that feature this out-of-pocket limit. Because of this popular feature and lower premiums, it may be worth the extra cost-sharing for Medicare beneficiaries.
WHAT DOES MEDIGAP PLAN L COVER?
Along with the out-of-pocket maximum ($2,780 in 2019), Medicare Supplement Plan L also features 75% coverage of these benefits:
Medicare Part B coinsurance or copayment
Part A hospice care coinsurance or copayment
Medicare Part A deductible
First three pints of blood used in a medical procedure
Skilled nursing facility care coinsurance
It also covers 100% of Medicare Part A coinsurance and hospital costs up to one year after Original Medicare benefits are used up. Because of the portion of cost-sharing, Medigap Plan L policies have lower premiums than other supplement plans, like Plan F, that cover all leftover costs by Original Medicare.
MEDICARE SUPPLEMENT PLAN L OUT-OF-POCKET COSTS
Under Plan L, you’ll pay some out-of-pocket costs associated with Medicare. These costs could be:
Medicare Part B deductible
Medicare Part B excess charges
Foreign travel emergency
You’ll also pay 25% of your Original Medicare coinsurance or copayment costs, any skilled nursing facility coinsurance, Part A’s deductible, and the first three pints of blood for a medical procedure. Because of this cost-sharing, you’ll pay lower premiums.
MEDIGAP PLAN L OUT-OF-POCKET MAXIMUM CAP PROTECTION
Even though you do have some out-of-pocket expenses with Medicare Supplement Plan L, there is a maximum cap. Medicare sets this limit annually. In 2019, this limit is $2,780. After you hit this limit, the Medicare Supplement insurance plan has to pay 100% of your Medicare-related costs for the remainder of the year. So, if covering some of your out-of-pocket Medicare expenses while still enjoying a lower premium sounds great to you, a licensed Medicare agent with Speir Agency will be happy to help you.