What is Medicare Supplement Plan L?
If you need assistance with some Original Medicare expenses and are looking for cheaper supplemental Medicare coverage, then you may want to consider supplemental Medicare Plan L. Although the coverage is quite basic compared to other Medigap plans, Medicare Supplement Plan L 2021 may be the right choice for your needs.
Medicare Supplement Plan L pays a percentage of the majority of the benefits it covers; this is with exception to Medicare Part A coinsurance & hospital costs for an additional 365 days (after depleting what Original Medicare covers), after which the policy covers this benefit in full. Due to the fact that you are subject to paying higher out-of-pocket expenses, out of the 10 standardized Medigap plans, Medicare Supplement Plan L rates are much less costly.
Medigap Plan L Eligibility
Before getting into the details of Medicare Supplement Plan L benefits, here are the general requirements to be eligible for Medicare Supplement Insurance Plan L:
– You are at least 65 years of age, a U.S. citizen, or permanent legal resident for at least five consecutive years
– You are currently receiving retirement benefits.
– You are disabled and receiving disability benefits
– You have End-Stage Renal Disease (ESRD)
– You have Lou Gehrig’s Disease (ALS).
Medicare Supplement Plan L Coverage
Medigap Plan L covers 75% of the cost for the following benefits:
– Deductible for Medicare Part A
– Hospice care coinsurance or copayment for Medicare Part A
– Coinsurance for skilled nursing facility care
– Copayment or coinsurance for Medicare Part B
– The first three (3) of blood received on a yearly basis
– Coinsurance hospital costs for Medicare Part A up to an extra 365 days after Medicare benefits have been depleted.
On the other hand, it does not cover:
– Medicare Part B excess charges
– Medicare Part B deductible
*For any covered service, there is a standard approved amount that Medicare will pay. There are doctors, however, that may charge more than the approved amount, and the difference of which, known as the excess charge, you would be responsible for paying.
Medicare Supplement Plan L Cost
While Medigap Plans are standardized nationwide, they are only uniform in base benefits and not the premium. The key difference between these policies is the price. Some insurance companies charge more for extra services they offer with their policies. However, the monthly premium shouldn’t be the only thing you consider when making your choice.
With Medicare Supplement Plan L coverage only paying for 75% of the majority of its benefits, you will be responsible for paying a portion of the expenses associated with the benefits mentioned above. If you think your out-of-pocket expenses will be low for the year, then Medicare Supplement Plan L coverage options may be the right choice for your needs, however, if you find that your expenses might be higher than what you would like to pay out-of-pocket, then you should consider a more comprehensive plan since the Medicare Supplement Plan L copay agreement may not be beneficial for you at all.
*An important note to take into account is the out-of-pocket limit. In contrast to all other Medigap coverage, Medicare Supplement Insurance Plan L includes an out-of-pocket yearly limit of $2,940 for the year 2020 on all Medicare-covered services. As soon as your spending has reached this limit, the policy will pay 100% of the covered services for the rest of the year.