Medigap Plan L

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 $3,110 (in 2021).

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 ($3,110 in 2021), 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 RAIMA Insurance will be happy to help you.