Understanding Medicare Supplement Plan L

Joseph Meyer
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What is a Medicare Supplement Plan?

Medicare alone won’t cover the majority of your healthcare expenses. Medicare supplemental insurance, also called Medigap, pays for the costs that Medicare doesn’t cover. Medicare supplemental insurance can be used with Original Medicare or with Medicare Advantage plans. However, you can pay for a Medicare supplemental policy only if you buy it before you turn 65 (you can still buy them during your 65th year).

There are 10 health insurance plans that are FAABE (Federal Alliance for Accessible, Affordable, Basic Health). The 10 health insurance plans are A, B, C, D, F, G, K, L, M, N. The plans cover different medical services and have different premiums. The plan that you choose will depend on what medical services you need most.

Medigap Plan L

Medicare can be a confusing topic, and there are a lot of different plans out there to choose from. One of the newest options is Medigap Plan L. This particular Medigap plan is available in all 50 states and was implemented as an option in 2010. So why would you need a Medigap plan?

First of all, let’s make sure we’re clear on what Medigap is. Medicare itself is the health insurance that’s offered to anyone over the age of 65 – it’s not an option, it’s an obligation. You have to sign up.

Medigap is a plan that you can purchase over and above your Medicare coverage. It deals specifically with the issues that are not covered by Medicare. For example, Medigap coverage is the only way to secure coverage for prescription drugs, which Medicare doesn’t cover at all. Many people also opt for Medigap plans because they feel that the coverage provided by Medicare is inadequate.

Choosing the Plan Best for You

Plan L is a Medicare supplement plan. It offers medical coverage but does not include prescription drug coverage. This plan is provided through insurance companies.

Plan L covers up to 75 percent of your medical expenses after the Medicare deductible and up to your plan’s maximum out-of-pocket limit. Plan L covers several important gaps in Medicare coverage. These gaps include Extra Help with Medicare Prescription Drug Plan costs and the Medicare Part B deductible.

Like all other Medigap plans, Plan L cannot be substituted for Original Medicare, which Part A and Part B both cover. However, if you are in a Medicare Advantage Plan (like an HMO or PPO), the cost of Plan L is covered by the plan. If you retire early, you can enroll in this plan as soon as you turn 65.

Plan L must be purchased during your initial enrollment period (IEP). You have 63 days from the day you turn 65 to make sure your plan will be in place on January 1, 2017.

If you decide to purchase an Advantage plan instead, you will not be able to enroll in Plan L during your IEP. You will have to wait until the next open enrollment period, which comes around each year during October, to make your enrollment choice.

Enrolling in a Medigap Plan

In the US, Medicare programs are administered by the federal government. It’s a public insurance program offering comprehensive health benefits to people aged 65 and older. Part A and Part B are the main parts of Medicare.

However, Medicare is not designed to cover all health costs. So if you need complementary medical health insurance, you can enroll in Medicare supplement plans. These plans – also called Medigap plans – are available alongside the Medicare benefit and are designed to pay for all co-payments, deductibles, and co-insurance policies, which are beyond the scope of Medicare coverage.

These supplemental plans are categorized into 13 standardized plans that cover different health needs. Each of these plans provides a different set of benefits, but all have the same goal ‗ to help cover the costs of Medicare. This way, the patients don’t have to pay for the additional expenses or for the remaining cost of Medicare coverage.

Now, it’s pretty clear that choosing the right Medicare supplement policies could have a significant impact on your medical costs. Now, let’s see how you can compare different plans to understand what the best option is for you.

Questions about Medigap Coverage?

Medicare has its share of complexities that can lead to confusion in some cases. Medicare supplement insurance plans are no exception since there are ten different plans available, often known as “Medigap coverage.” However, there is one plan that needs more clarification than most, which is the plan known as Medigap Plan L.

Medigap plan L is the polar opposite of Plan F. While F is the least costly of all Medicare supplement plans, plan L is the most costly. While F has the greatest number of covered benefits, plan L has the fewest of covered benefits. So why would anyone choose Medigap plan L over Plan F?