Medigap Plan L
Medigap Plan L provides a majority of the benefits that Medicare Supplement plans can offer. Depending on your personal situation, it can potentially come at a lower monthly premium than other plans. Additionally, it has an out-of-pocket maximum, or a limit on how much spending you will have to do if you enroll in this plan.
However, Plan L is by no means the most popular Medicare Supplement plan on the market, with on average less than 0.5% of Medigap enrollees choosing this policy.
What does Medigap Plan L cover?
If you enroll in Medigap Plan L, you will receive 100% coverage for:
- Part A coinsurance payments for inpatient hospital care up to an additional year after your Medicare benefits have been expended
- Part B preventive care coinsurance
- Foreign travel emergency expenses (up to your plan’s limit)
Additionally, your Medigap plan will cover 75% of the following expenses:
- Part B coinsurance and copays
- Skilled Nursing Facility (SNF) and Part A Hospice Care coinsurance and copays
- Part A deductible ($1,484 in 2021)
- First three pints of blood for a medical procedure
The only expenses that aren’t covered at all by Plan L are your Part B deductible and Part B excess charges*.
Plan L can be a good alternative to Plan K for people who accept a potentially higher monthly premium in exchange for paying less on their cost-share expenses and enjoying a lower out-of-pocket maximum. But keep in mind that given the unpopularity of these plans, they don’t have much competition. Therefore, they don’t typically offer as low of premiums as you might anticipate.
*Excess charges are incurred when a medical provider doesn’t “accept assignment” or, in other words, charges more than the Medicare-approved amount that corresponds to their services.
What is the Plan L out-of-pocket maximum?
The out-of-pocket maximum (MOOP) that you will have to pay on Plan L has been set at $3,110 for 2021. This means that once you have spent that amount on Medicare costs, your plan will pay 100% of the eligible expenses that you have for the rest of the year.
It’s important to know that out-of-pocket limits increase every year, so your MOOP won’t be the same years down the line as it was when you first enrolled in Plan L.
We know that choosing a Medicare Supplement plan is no easy feat. At first glance, certain plans may appear to be better or worse than others. That’s why it is so important to look into your individual case in order to determine which plan is best for you.
Oftentimes, people consider Plan L because their current coverage is too expensive and their insurance company is trying to move them to a plan with less comprehensive coverage at a lower cost. ‘
However, here at Medicare Plans Direct, we can shop the market for better rates and, oftentimes, can get people a more comprehensive plan at a similar monthly premium. That’s why it’s so important to seek professional help when enrolling in Medicare.
If you would like help choosing a Medigap plan, or are simply seeking guidance throughout the Medicare enrollment process, reach out to us today.