Medicare Supplement Plan L

Medicare Supplement Plan L is a standardized Medicare Supplement (Medigap) plan available in 47 states nationwide through private insurance companies. Medigap Plan L offers several attractive benefits and is an excellent choice if you are looking to save on premiums.

It’s important to note that Medicare Supplement Plan L comes with cost-sharing. Meaning, you’ll pay for deductibles, coinsurance, and copayments, as well as your policy’s monthly premium. However, your plan will come with a maximum out-of-pocket limit.

For those who are comfortable with this structure, a Medicare Supplement Plan L policy can be a welcomed addition to their healthcare coverage, as it provides more benefits than Original Medicare (Part A and Part B) alone.

Medigap Plan L Pros and Cons

What is Medicare Supplement Plan L?

Medicare Supplement Plan L is a supplemental healthcare plan providing cost-sharing benefits to seniors through private healthcare providers. Your Medicare Supplement Plan L allows you to pay a low monthly premium for secondary coverage to Original Medicare.

When you enroll in Medicare Supplement Plan L, you can receive care at any doctor or hospital accepting Original Medicare, regardless of the carrier your plan is through. Additionally, you will never need a referral to see a specialist.

But while, in the long run, seniors often save money with Medigap Plan L over staying on Original Medicare alone, it’s not the most comprehensive Medicare Supplement plan available. Still, plenty of benefits are available for you and your healthcare needs.

Medicare Supplement Plan L Benefits

Medicare Supplement Plan L offers several benefits that can be useful with Original Medicare coverage. Although this plan isn’t the most robust when it comes to benefits, it still provides great coverage in the event of an emergency.

With Original Medicare only, you would be responsible for the full cost of your Medicare Part A copays and coinsurance plus 20% of your Medicare Part B costs after you fulfill the Medicare Part B deductible. This means there is no limit to your out-of-pocket costs on Original Medicare alone. If you receive a million-dollar medical bill, you can owe up to 20%, or more with copayments.

This is where Medicare Supplement Plan L comes into play. Although you may still be responsible for copays, coinsurance, and deductibles, your spending is limited. With Plan L, you’ll pay no more than $3,470 in a calendar year (not including your monthly premium).

Medicare Supplement Plans Comparison Chart Plan K and Plan L

The chart below compares Medicare Supplement Plan L benefits to those of other standardized Medicare Supplement plans. As you can see, Medigap Plan L covers 75% of the costs Original Medicare leaves for you. Thus, you are responsible for 25% of the remaining 20% of costs after Medicare pays. Further, you will be responsible for 100% of the expenses not covered by Medigap Plan L.

What Does Medicare Supplement Plan L Cover?

Medicare Supplement Plan L offers coverage for Medicare Part B preventive care coinsurance, Medicare Part A coinsurance, and hospital costs up to 365 days beyond when your Medicare benefits are exhausted.

As a cost-sharing plan, Medigap Plan L offers 75% coverage for Medicare Part B coinsurance or copays, the first three pints of blood, your Medicare Part A coinsurance or copays for hospice, coinsurance for skilled nursing facilities, and the Medicare Part A deductible.

Original Medicare alone does not provide 100% coverage for seniors. For example, Original Medicare only covers 80% of Part B services. Medicare Part A will pay for most of the costs of your hospital stay after you pay the Part A deductible.

If you have a covered hospital stay, hospice stay, or short-term stay in a skilled nursing facility, Medicare Part A pays 100% of allowable charges for the first 60 days after you meet your Part A deductible. But afterward, you will need to pay the Part A copayments unless you have a Medigap plan which closes the gap by taking care of the costs for which you would otherwise be responsible.

Another consideration with Medigap Plan L is Medicare Part B excess charges. While you won’t encounter excess charges in every state and they aren’t common in the states that allow them, enrollees in Medicare Supplement Plan L must pay them in full.

Furthermore, Medicare Supplement Plan L doesn’t cover your Medicare Part B deductible. Your Medigap benefits won’t kick in until you cover this cost.

What Isn’t Covered by Medigap Plan L?

As mentioned, Medigap Plan L isn’t the most comprehensive plan on the market. There are plenty of benefits covered by other plans that Plan L does not include. For example:

• Dental or vision care
• Emergency care when traveling outside of the United States.
• Long-term care
• Medicare Part B deductible*
• Medicare Part B excess charges
• Prescription drug costs
• Private-duty nursing

*New Medicare beneficiaries (since 2020) are ineligible to purchase plans covering the Medicare Part B deductible.

Thankfully, if Medicare Supplement Plan L doesn’t work for your healthcare needs, there are plenty of other options that may be better for you. Speaking with a licensed Medicare agent can help you determine the best fit for your healthcare needs.

Average Cost of Medicare Supplement (Medigap) Plan L

The average cost of Medigap Plan L is around $100-$200 per month. Medigap monthly premiums depend on numerous factors, such as your state’s cost of living and your age and gender.

The only way to obtain an accurate estimate of your costs is to speak to a Medicare agent. But below, we provide sample rates from three different states so you can gain an idea of what your premiums might look like. For each example, we compare the coverage of both males and females aged 65 and 75 that are non-smokers:

Medigap Plan L has a maximum out-of-pocket (MOOP) limit. The purpose of the MOOP is to protect beneficiaries from spending over a certain amount on covered services out-of-pocket in a calendar year.

The MOOP for Medicare Supplement Plan L in 2023 is $3,470. This amount changes annually.

An example of how the MOOP works is if you develop a severe illness that requires frequent hospital stays. With Medigap Plan L, the most you will pay outside your monthly premiums is $3,470 for the year.

Should you spend $3,470 out-of-pocket on hospital stays, you can expect 100% coverage from your carrier for the rest of the year. It’s important to remember, however, this only applies to any further Medicare-covered services, as Medicare Supplement plans only cover what Medicare will cover.

What Carriers Offer Medicare Supplement Plan L?

Several carriers offer Medicare Supplement Plan L coverage to those eligible for Original Medicare. But the availability of specific lettered plans will change from brand to brand and by location. Nevertheless, many options persist from top-rated companies. Here are several examples of top-rated carriers that may offer Medigap Plan L coverage near you:

• Accendo
• Aetna
• Aetna Health and Life Insurance Company (An Aetna Company)
• American Continental Insurance Company (An Aetna Company)
• American Retirement Life Insurance Company (A Cigna Company)
• Anthem Blue Cross Blue Shield
• Bankers Fidelity
• Blue Cross Blue Shield
• Cigna
• Combined Insurance
• Continental Life Insurance Company (An Aetna Company)
• Equitable
• ForeThought Life Insurance
• Gerber Life Insurance
• Government Personnel Mutual
• Heartland National
• Humana
• Individual Assurance Company
• Loyal American Life Insurance Company (A Cigna Company)
• Lumico
• Manhattan Life
• Medico
• Mutual of Omaha
• National General
• New Era Life Insurance
• Omaha Insurance Company (A Mutual of Omaha Company)
• Oxford Life
• Philadelphia American Life Insurance
• SilverScript (A CVS Caremark Company)
• Standard Life and Casualty
• United American
• UnitedHealthcare
• UnitedHealthcare (AARP Medicare Supplement)
• United of Omaha (A Mutual of Omaha Company)
• United World (A Mutual of Omaha Company)

With so many options available, you may feel overwhelmed by choosing a carrier, but we can help. Our team of licensed Medicare agents is proud to help connect beneficiaries like you with the right carrier for your coverage needs. Taking the time to assess your healthcare needs and budget allows our team to provide you with the right choice for your supplemental coverage.

Medicare Supplement Plan K and Plan L

Generally, Medigap Plan L and Plan K are very similar in terms of coverage and plan structure, including their cost-sharing arrangements. However, there are some notable differences between the two.

For starters, Medicare Supplement Plan L covers a higher percentage of the costs than Plan K. Medigap Plan L covers 75% of your Original Medicare out-of-pocket costs, whereas Plan K only covers 50%.

Additionally, Medicare Supplement Plan L has a lower maximum out-of-pocket limit than Plan K. Medigap Plan K’s maximum out-of-pocket amount for 2023 is $6,940 – double Plan L’s $3,470.

When Should I Enroll in Medicare Supplement Plan L?

If you wish to enroll in Medicare Supplement Plan L, the best time to do so is during your Medicare Supplement Open Enrollment Period. This enrollment period begins for you on the first day of your 65th birth month and lasts six months. In this window, you can enroll in a Medigap plan without having to answer underwriting health questions. So, you will have your choice of policy.

You can still sign up anytime if you do not enroll during your Open Enrollment Period. However, you may need to answer underwriting health questions. Still, the carrier can deny your application due to pre-existing health conditions, thus limiting your benefit options.

Medicare Supplement Plan L FAQs

How to Enroll in Medicare Supplement Plan L

If you want to enroll in Medicare Supplement Plan L, we’re here to help. At MedicareFAQ, our licensed agents help you find the best coverage for your health and budget needs.

Call the phone number above to start your free plan comparison from top carriers in your area today. If you can’t call, you can also submit our online rate form to learn more about Medigap Plan L premiums in your area.

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