Medicare provides millions of Americans with health insurance, but it doesn’t completely cover all of your costs. If you’re on Original Medicare alone, you’re also responsible for deductibles, copays, and up to 20% coinsurance for the services that you receive. Medicare Supplement (Medigap) plans help cover these out-of-pocket expenses. Medicare Supplement Plan L is one of the mid-range coverage Medigap plans available for purchase.
What Does Medicare Supplement Plan L Cover?
Medicare Supplement Plan L protects you from most of the costs that you’re responsible for with Original Medicare, but not all of them. It also has an out-of-pocket amount that you must reach before its benefits pay in full.
Medigap Plan L covers:
- Medicare Part A coinsurance
- Medicare Part B coinsurance or copayment (75%)
- Blood (first three pints) (75%)
- Part A hospice care coinsurance or copayment (75%
- Skilled nursing facility care coinsurance (75%)
- Part A deductible, which is $1,408 in 2020 (75%)
Plan L will only pay 75% on the marked benefits until you’ve spent $2,940 out-of-pocket. Once you’ve met that amount, it’ll completely cover the costs 100%.
What Doesn’t Medicare Supplement Plan L Cover?
Medicare Supplement Plan L doesn’t offer protection for all of the gaps in Original Medicare. If you purchase Plan L, you’ll be responsible for:
- Medicare Part B deductible, which is $198 in 2020
- Excess charges
- Foreign travel emergency
It’s not likely that you’ll receive a bill from your doctor for excess charges, but you should verify this before you select Plan L. Most doctors accept Medicare assignment, which is the amount that Medicare states it’ll pay for a given service. An excess charge may be up to an additional 15% of the cost that Medicare agrees to pay, and your doctor may charge it if they don’t believe the Medicare amount is enough.
Should I Choose Medicare Supplement Plan L?
Medicare Supplement Plan L may be a good choice for you if you don’t receive much medical care. Otherwise, the out-of-pocket costs you incur may wind up costing you more money than buying a Medigap plan with a higher level of coverage. Keep in mind that if you choose this plan, you could have to pay up to $2,940 each year, so be ready to pay this amount without it ruining your budget.
Before you select Medicare Supplement Plan L, you may want to review your options. You could find plans that offer a higher level of coverage for a similar premium. For instance, High Deductible Medigap Plan F and High Deductible Medigap Plan G both have a deductible amount lower than Plan L ($2,340 in 2020) and cover more services. Despite the higher level of coverage that they offer, they may have a similar premium to Plan L.
You should consider your unique situation in order to decide which plan is best for you. Medicare Supplement Plan L isn’t offered by many carriers, so you may not be able to purchase it depending on what’s available in your area. Ultimately, we encourage our clients to choose the plan that makes them feel confident in their coverage, and at ease knowing they can receive the care that they need, when they need it.
Nothing on this website should ever be used as a substitute for professional medical advice. You should always consult with your medical provider regarding diagnosis or treatment for a health condition, including decisions about the correct medication for your condition, as well as prior to undertaking any specific exercise or dietary routine.