Medicare can be complicated. Explore our guides to basic coverage, supplement plans, Medicare Advantage, and more.
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Having Medicare coverage makes healthcare services more affordable. Unfortunately, Medicare has some gaps in coverage. These gaps can mean that you end up spending money on copayments and deductibles.
Medigap insurance fills some of these gaps to make healthcare even more affordable.
Private insurance companies sell several types of Medigap policies. Before you purchase a policy, you should learn about the advantages and disadvantages of Medicare Supplement Plan L
Regular Medicare coverage has some pretty significant gaps that can cost you a lot of money. Even with Medicare, you may need to pay:
A $1,364 deductible (as of 2019) before Medicare starts to pick up the tab for a hospital visit.
Up to 20% of costs associated with things like medical tests and anesthesiology.
A $185 deductible for doctor visits.
Up to 20% of physician services after you reach your deductible.
Up to 37% of medication costs after spending $3,820 on prescriptions.
Medicare makes healthcare less expensive, but you can still spend thousands of dollars a year. Medigap Plan L lowers some of these expenses.
When you purchase Plan L Medigap coverage, your policy pays for:
75% of Medicare Part A and Part B copayments.
75% of hospice care.
75% of care at a nursing facility.
75% of Medicare Part A deductibles.
Getting Plan L Medigap coverage also limits your out-of-pocket spending to $2,780. That may sound like a fair amount of money, but it's much lower than the out-of-pocket expenses you could face with standard Medicare coverage.
While Medicare Plan L Supplement coverage gives you a lot of advantages, it doesn't cover everything.
For example, your Plan L policy will not pay for or lower the cost of:
Medicare Part B deductibles.
Medicare Part B excess charges.
Travel expenses to medical facilities outside of the United States.