Medicare provides essential health insurance for millions of beneficiaries across the United States. However, Original Medicare alone doesn’t cover all of your medical expenses. Parts A and B have many out-of-pocket costs, including deductibles, copays, and coinsurance expenses.
Medicare Supplement Plan K and Plan L can help with some of these costs.
What Is a Medicare Supplement Plan?
Medigap plans, also known as Medicare Supplements, are one way to take care of the costs that remain after Original Medicare pays. Medicare Supplements Plan K and Plan L are just two of the ten plan options.
All Medigap plans work the same way – as a secondary insurance policy. After Parts A and B pay their portion, your Medigap plan pays some or all of the remaining costs. They will not pay for anything not covered by Medicare.
Plans K and L are a little different than other Medigap plans because they require you to pay some coinsurance costs. Though they are not the most popular plans, it’s still smart to have an idea of what each plan covers so you can make informed decisions.
What Is Medicare Supplement Plan K?
Let’s start by taking a look at some of the key features of Medigap Plan K.
- 100% coverage of Part A hospital costs
- 50% coverage of Part B coinsurance and copays
- 50% coverage of the first three pints of blood
- 50% coverage of Part A hospice costs
- 50% coverage of Part A skilled nursing facility costs
- 50% coverage of the Part A deductible
Plan K also has an annual out-of-pocket limit of $6,940 in 2023. If you spend this amount, all your costs after that are paid by Plan K.
What doesn’t Plan K cover? Plan K does not pay the Part B deductible, Part B excess charges, or any foreign travel emergency costs. The average premium for Plan K is around $80 per month.
What Is Medicare Supplement Plan L?
It’s time to take a look at Medigap Plan L. It’s very similar to Plan K but with different coinsurance costs.
- 100% coverage of Part A hospital costs
- 75% coverage of Part B coinsurance and copays
- 75% coverage of the first three pints of blood
- 75% coverage of Part A hospice costs
- 75% coverage of Part A skilled nursing facility costs
- 75% coverage of the Part A deductible
Like Plan K, Plan L does not pay the Part B deductible, excess charges, or foreign travel emergencies. It has a current annual out-of-pocket maximum of $3,470. The average cost for Plan L is around $140 per month.
Alternatives to Plan K and Plan L
We don’t typically recommend Medicare Supplements K or L. We feel our clients are better served by one of the more popular Medigap plans. These three plans offer better coverage and sometimes even lower premiums.
Plan F: Plan F pays for all remaining costs after Parts A and B pay their share. However, you must have turned 65 prior to 2020 to be eligible for Plan F.
Plan G: Plan G pays for all Medicare costs except the Part B deductible.
Plan N: Plan N has lower premiums than Plans F and G but does require some office visit and emergency room copays.
Medicare Advantage: Medicare Advantage (Part C) plans are not the same as Medigap plans. However, they can be a great fit for many people and should always be considered when choosing your Medicare coverage.
To learn more about Medigap plans, call Carolina Senior Benefits. We can chat more about Medicare Supplement Plan K and Plan L, but we can also tell you more about other Medicare plans that might be a better fit for you.
