Medicare Supplement (Medigap) Plan L

Medigap Plan L covers a portion of your out-of-pocket costs left over by Original Medicare. It also contains an annual out-of-pocket maximum limit of $2,940 (in 2020). 

Only two Medicare Supplement Insurance policies feature this out-of-pocket maximum — Plan L and Plan K. Due to this factor and lower premiums, it could be worth the added cost-sharing for Medicare beneficiaries.

What Does Medigap Plan L Cover?

In addition to the out-of-pocket limit ($2,940 in 2020), Medicare Supplement Plan L also includes 75% coverage of these benefits:

  • Medicare Part A deductible
  • Skilled nursing facility care coinsurance
  • Medicare Part B copayment 
  • Part A hospice care copayment
  • The first three pints of blood used in a medical procedure

Medigap Plan L also covers all of Medicare Part A coinsurance and hospital expenses up to one year after Original Medicare benefits are expired. Because of the percentage of cost-sharing, Plan L policies feature lower premiums than other supplement plans.

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Medicare Supplement Plan L Out-Of-Pocket Expenses

Under Plan L, you will pay some out-of-pocket expenses associated with Medicare. These costs might be:

  • Foreign travel emergency 
  • Medicare Part B deductible 
  • Medicare Part B excess charges

You will also pay 25% of your Original Medicare copayment costs, Part A’s deductible, skilled nursing facility coinsurance, and the first three pints of blood for a medical procedure. You will pay lower premiums because of the cost-sharing.

Medigap Plan L Out-Of-Pocket Maximum Cap Protection

Although you have some out-of-pocket costs with Medicare Supplement Plan L, there is a maximum cutoff point. Medicare sets the limit each year. In 2020, this limit is $2,940. Once you hit this limit, the insurance plan must pay 100% of your Medicare-related expenses for the rest of the year.

If covering a portion of your out-of-pocket Medicare costs while still having a lower premium sounds intriguing to you, let us help. Call Turning 65 Solutions at 830-217-6711.