Medicare Supplemental Insurances or Medigap are designed to alleviate the burden of out-of-pocket expenses for policy holders. Medicare offers a range of supplemental plans to consider. Each plan has specific benefits it covers, particular services it does not cover, and particular premium charges.
Medigap Plans A-J has basic benefits that are covered in all of the plans. The basic benefits covered under Medigap Plans A-J are Medicare Part A expenses for hospitalization from day 61 to day 90 during the eligible Medicare period and Medicare Part A hospitalization expenses not covered by the primary Medicare. The first three pints of blood, coinsurance, outpatient services, and copayment charges under Medicare Part B are covered expenses under Medigap Plans A-J.
Medigap Plans K and L are very similar in coverage to Medigap Plans A-J, but these two plans are cost-sharing. These plans are focused on reducing the premium costs. This means there is more out-of-pocket expenses expected from the policy holder so that the insurance premium can be lower. One important factor to keep in mind is that when the annual out-of-pocket limit has been reached, the plans will pay for 100% of copayments, coinsurance, and deductibles.
Medigap Plan K pays for 50% of Hospice Care coinsurance or copayment, 50% Skilled Nursing Facility Care Coinsurance, and 50% of Medicare Part A Deductible. Medigap Plan L covers 75% of the basic services like hospitalization and skilled nursing facility charges. Be sure to compare coverage benefits, out-of-pocket expenses, and premium charges when reviewing and considering these two plans as a supplemental plan.