Medigap Plan L

Plan L is one of these ten plans of Medicare Supplements, and it offers a unique set of coverage options that may be attractive to some Medicare beneficiaries.

What is Medigap Plan L?

Plan L offers a more affordable premium in exchange for a higher out-of-pocket cost-sharing than other Medigap plans. It covers all of the benefits of Plan A, which include coverage for Medicare Part A and B coinsurance, copayments, and hospital costs for up to 365 additional days after Medicare benefits are exhausted. In addition to Plan A benefits, Plan L also covers 75% of the Medicare Part B coinsurance or copayment and the first three pints of blood each year.

Plan L has an out-of-pocket limit of $3,110 in 2023. This means that once you have reached this limit for the year, your Medigap plan will cover all remaining Medicare-approved costs for the rest of the year. This out-of-pocket limit is higher than that of other Medigap plans, but it can still provide a significant level of financial protection for beneficiaries who need a more affordable premium.

How does Medigap Plan L works?

One important thing to note about Plan L is that it does not cover the Medicare Part B deductible, which is $233 in 2023. This means that beneficiaries on Plan L will need to pay this deductible out of pocket each year before their coverage begins. It also does not cover excess charges, which are charges from doctors and providers that exceed the Medicare-approved amount. This can be a concern for beneficiaries who see doctors who do not accept Medicare assignments.

It’s also worth noting that some Medigap plans may offer more comprehensive coverage with lower out-of-pocket costs. For example, Plan F covers all of the same benefits as Plan L, as well as the Medicare Part B deductible and excess charges. However, Plan F is no longer available to new Medicare beneficiaries as of 2020.

Overall, Plan L can be a good choice for Medicare beneficiaries who are willing to pay a higher out-of-pocket cost in exchange for a more affordable premium. It’s important to carefully consider your healthcare needs and budget when choosing a Medigap plan, and to compare the benefits and costs of each plan to determine which one is the best fit for you.

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