We all know that our health should be our main priority, but life has a habit of getting in the way and causing distractions.
Before we know it, we are needing to pay a visit to a doctor, end up in the emergency room, or looking for a prescription for medication.
All of these things can cost serious money, and so it is crucial that you have sorted out your insurance plan well in advance.
This will help to protect your finances, as well as allow you to focus on getting yourself fighting fit and back to full strength.
One of the key benefits which Medigap plans have over the traditional Medicare model is their cap on out of pocket spending.
One of the downsides of Medicare is that once deductibles and copayments are calculated, you could still end up paying a hefty sum for your treatment, despite having paid your premiums for the policy.
There are also exceptions and exemptions, leaving the policy coverage gaps. Medigap covers these gaps, offering a range of policies which make it easier to pick and choose the coverage you desire.
Plan options range from A to N with a few programs discontinued leaving the current Medigap selection at ten plans.
A supplemental plan can be the ideal way for you to receive the coverage you need, at a price which is easier for you to afford.
They range from comprehensive coverage, where all costs are paid for, down to lesser options, where you are required to contribute a larger amount to the pot.
These options are informed by the premiums, which are available to suit every budget. Plan L is one of the popular options, offering high-quality, comprehensive coverage.
Medigap Plan L Benefits
One of the main advantages of Plan L is the excellent coverage it offers. It is unique in its offering, making it appealing to a broad audience and offering bonuses which are not found elsewhere in the program.
Portions of the majority of expenses will be covered, and it has the bonus of acting as one of the more affordable options, making this great if you are on a budget and looking to cut costs
Some of the benefits of Plan L include:
- Full coverage for the Medicare Part A coinsurance
- Hospital costs for an extra 365 days following the expiration of your traditional Medicare coverage. This benefit can really save you money; hospital stays can prove to be very expensive, with a charge of $329 coinsurance per day for 30 days after your initial 60 days has expired, and $658 until the end of the following benefit period. Ensuring that you have this additional coverage means you will not be slapped with a huge hospital bill once you leave.
- 75 percent coverage for Part A hospice care coinsurance or copayments
- 75 percent protection for Medicare Part A deductible. This deductible can change every year, and you will be required to pay this before your Medicare coverage kicks in. The Medigap policy helps you to cover this cost.
- 75 percent of Part B coinsurance and copayment
- 75 percent of the first three pints of blood used in any medical procedures
- 75 percent of skilled nursing facility care coinsurance
Another significant benefit of Plan L is the maximum out-of-pocket cap, which helps make it unique from the other Medigap plans—only one other policy offers this benefit.
This limit is currently at $2,780, and once this is reached, you will receive 100-percent coverage for all of the categories with no need to make a contribution or pay a penny.
Plan L is amongst those options offering lower premiums, as there is less comprehensive coverage available.
All of the basics are covered, but some charges will only be covered partially, around 75 percent rather than the full 100 percent offered by some alternatives.
In addition, there are some areas where you will need to spend cash, such as the Plan B deductible and excess charges; this is something which has now been implemented across all plans.
The excess charges refer to the amount that a Medicare doctor may charge you for treatment. There is a set amount which is determined by Medicare, and a doctor may only charge 15 percent over this. This difference is an amount payable by the patient.
While you will still be required to pay some costs, the out-of-pocket benefit is a reassurance that you will be able to access healthcare and medical assistance even if you are suffering from a recurring or long term health condition.
It is important to research the different options carefully; some companies may have different requirements and costs, such as setting in an age-based premium or minimum amount.
The cost of premiums may also vary between states, so this is something to consider carefully.
Medicare Supplement Plan L Alternatives
Plan M – With only partial coverage for the Part A deductible, Medigap Plan M is usually one of the most affordable supplemental policies.
Plan C – Not to be confused with Medicare Part C, Medigap plan C is a top option for is high level of coverage.
Plan G – Covering all the gaps except for the Part B deductible, Medicare supplement Plan G is a favorite choice for its simplicity.
Plan L is available to anyone covered by Medicare, though some eligibility criteria may vary by provider—and, of course, your premium will vary too. Plan L is not one of the plans set to be phased out by January 1, 2020.
Only two plans are included in this upcoming change: Medigap C and Medigap F. Plan L is not affected because it does not cover the Medicare Part B deductible.
If you are interested in covering that deductible, though, C and F applications will remain open until 2020, and existing policies won’t be canceled once the change goes into effect.
While more comprehensive than Plan L, both C and F also come at a far higher price. Another good reason to carefully consider your budget and needs.
Choosing your Medicare plan and supplemental insurance is an important decision, Afterall, and there is a range of options available depending on the level of coverage you require and your budget to spend.
It is imperative that you take the time to thoroughly research the different options available to ensure that you make the best choice for your health.