4) Supplement Insurance Plan L (4 of 5)
4) Supplement Insurance Plan L (4 of 5)
Supplement insurance Plan L is a cost-sharing policy, providing baby boomers with lower premiums. People who opt for Plan L will have to pay their insurance company 75 percent of their covered medical expenses and they will pay the remaining 25 percent. People with this plan will have to pay Part B deductible as well as for any excess charges that occur.
Plan L places a cap on the policyholder’s expenses. In 2016, $2,480 is the maximum established limit for Plan L. In the event your medical expenses reach or go above $2,480, Plan L will kick in, covering all your expenses hereafter.
The cap makes it easier for people to agree to share the 25 percent of the medical costs. Anyone who faces medical distress one year will have the knowledge of knowing that will not be paying more than the cap limit. For instance, you need to visit the hospital for surgery and your Plan L cap is $1,000.
You will pay $250 and plan L will pay the remaining $750. If your medical costs go over the cap limit, Plan L will pay for all approved expenses for the year. People who make a good living may opt for Plan L.