Comparing Cost-Sharing Plans: Medigap Plans K and L

Managing the costs of Original Medicare

Original Medicare is an option that many choose.  Those that have paid the right taxes will receive Part A, one of the components of Original Medicare, premium-free.  This can reduce bills, but there are still some costs that will need to be paid for out-of-pocket.  Being able to plan for these costs is important, as health insurance isn’t free.  If you’re concerned about how to pay for your Original Medicare costs, know that there are options available.

One of the best ways to lower the costs of Original Medicare is Medigap.  Let’s go over some details about Medigap and talk about two of the policies that many beneficiaries want to know more about.

Medigap

Medigap is supplemental insurance that’s offered through private insurance companies.  Its purpose is to lower how much beneficiaries will need to pay when it comes to their Original Medicare bills.  Medigap is only available for those enrolled in Original Medicare, not Medicare Advantage.

There are ten different Medigap policies.  While there is variety within the ten policies, some of them are very similar.  Because of this, it’s important to pay attention to the details and differentiate what makes them different.  Being able to think critically when it comes to Medigap is important because these policies have the potential to save beneficiaries thousands of dollars.

Plans K and L

Medigap Plans K and L are very similar and stand out from the other policies because they offer percentage coverage, as well as an out-of-pocket limit.  Neither of these policies includes any foreign travel exchange coverage, so if you’re planning on going out of the country and would like some sort of coverage, these plans may not be the right choice for you.

The out-of-pocket limits that these plans offer are some of the most attractive features that they have.  An out-of-pocket limit often reassures beneficiaries, as they can add into their budgets the most they would possibly have to spend within one year.  The out-of-pocket limit did increase in 2021.  For Plan K, it’s now $6,220 and for Plan L, it’s $3,110.

The difference in the out-of-pocket limit is one of the biggest things to note between these policies.  Keep in mind that not all Medigap policies are priced equally, so a policy’s fees will align with the coverage it provides.

The percentage coverage that these policies provide is very interesting.  Some individuals prefer to have specific costs completely covered.  If this aligns with your goals, then you will need to choose a different Medigap plan.

Deciding what your long-term insurance goals are is important when selecting a Medigap policy.  Because Medigap has the potential to save thousands of dollars, it’s important that you make the right selection from the start.  If you’re wondering which Medigap policy is right for you, contact us today and make an appointment to speak with one of our experienced insurance professionals.

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