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November 22, 2011

Medicare Supplement Plans - Plan L

What's Unique to Plan L?

Plan L is one of two Medicare Supplemental Insurance plans where most of the benefits are in the form of partial coverage of Medicare out-of-pocket expenses. Given the higher cost-sharing for people enrolled in Plan L, this plan has an attractive monthly premium. However, there are no guarantees that Plan L will represent a very low monthly premium. It is always recommended that you comparison shop to determine what plans are available in your area and at what price.

Plan L will pay for 75% of the expenses for the following:

  • Medicare Part A deductible
  • Medicare Part B co-payment or co-insurance coverage
  • First three pints of blood for a covered medical procedure
  • Part A hospice care co-insurance or co-payment
  • Skilled Nursing Facility (SNF) care co-insurance

Plan L provides full coverage for the following:

  • Medicare preventive care Part B co-insurance
  • Medicare Part A co-insurance hospital costs up to an additional 365 days after Medicare benefits are exhausted

Out-Of-Pocket Limit

There is a $2,330 annual out-of-pocket expense limit for enrollees in Medigap Plan L. These expenses must be for approved Medicare-related services. After a person enrolled in Plan L spends $2,330 in out-of-pocket expenses within a single year, Plan L pays 100% of covered services for the rest of the calendar year.

See how the benefits of Plan L compare to those of other Medigap plans with our Medigap plan benefit comparison.

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Medicare Advantage Plans, sometimes called "Part C" or "MA Plans," are offered by private companies approved by Medicare and provide Medicare Part A and Part B coverage. Medicare prescription drug coverage is insurance run by an insurance company or other private company approved by Medicare. A Medicare Supplement plan is a health insurance plan provided by a private company that fills in the "gaps" in original Medicare coverage.