Plan L Medicare Supplement Coverage
What is Medicare Supplement Plan L?
If you need help with some Original Medicare expenses and are looking for a cheaper Medigap coverage, you may want to consider Medicare Supplement Plan L. Medicare Supplement Plan L 2021 offers coverage that is considered quite basic by some, however, depending on your situation and needs, it might be suitable for you.
Medicare Supplement Plan L pays a percentage of the majority of the benefits its covers, except Medicare Part A coinsurance and hospital costs for an additional year (after depleting what Original Medicare covers), after which, the policy covers this benefit in full. The premium for Medicare Supplement Insurance Plan L is low compared to other Medigap plans, however, policyholders may be subject to higher out-of-pocket expenses.
Supplemental Medicare Plan L Eligibility
Before getting into Medicare Supplement Plan L benefits, here are the general eligibility requirements for Medigap Plan L:
– You are at least 65 years of age and are a U.S. citizen or a legal resident for at least five consecutive years
– You are currently receiving retirement benefits
– You are disabled and therefore receiving disability benefits
– You have End-Stage Renal Disease (ESRD)
– You have Lou Gehrig’s Disease (ALS)
Medicare Supplement Plan L Coverage
Covers 75% of the costs for:
– Medicare Part A deductible
– 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) pints 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
Medicare Supplement Plan L coverage options do not include:
– Medicare Part B deductible
– Medicare Part B excess charges (which comes into play in case a provider wants to charge more for their services. This could be an additional 15% of the original service cost)
How much does Medicare Supplement Plan L cost?
Medicare Supplement Plan L rates differ from one insurance carrier to another. However, Medigap Plan L can be purchased for a lower premium in comparison with other Medigap plans. It is important to understand that monthly premiums are not the only fees you’ll be responsible for. Since Plan L covers only 75% of the majority of its benefits, this will leave you responsible for paying a portion of the expenses associated with all the benefits Plan L covers. If you estimate that your out-of-pocket expenses will be low, you may consider Plan L this year. If, however, the opposite happens and your out-of-pocket expenses are high, Medicare Supplement Plan L copay agreement will not help you save money at all, and you will end up paying more money than you would if you purchased a more comprehensive policy.
*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.