Medicare has four main Parts A, B, C & D. Part A & B are know as original Medicare. Part C is known as Medicare Advantage and Part D for prescription drug coverage. There are also 10 Medicare Supplement or Medigap plans available. It is important to know the difference betweens parts and plans.
The differences between Medicare supplement Plans A to N can be fairly tough to compare at first glance.
Plans K & L provide you with the lowest monthly premium of all the supplement plans. In exchange for a lower premium, these cost-sharing plans cover less of the coinsurance and copayments than other Medicare Supplement insurance plans. With both plans you have to pay your Medicare Part B Deductible and a percentage of your Medicare Part A deductible. Plans K and L do offer an out-of-pocket maximum, which limits the amount you will have to pay each year. Plan K has an out-of-pocket-maximum of $5,120. Plan L has an out-of-pocket-maximum of $2,560.
In general, Plan K offers a lower monthly premium than Plan L, but offers higher coinsurance amounts and a higher annual out-of-pocket limit. These two plans are great for people who are healthy, but do not want an Advantage Plan because of a limited network. Also, some companies will allow you the freedom to switch from any supplement plan from month to month. For example, you could even switch from Plan K to Plan F, which is a full coverage plan.
Example: After Part B Deductible is paid for the year - $183
- Plan L
- A $200 doctor bill --> Medicare covers 80% = $160 --> Plan covers 10% = $20 --> You pay 10% = $20
- Plan K
- A $200 doctor bill --> Medicare covers 80% = $160 --> Plan covers 15% = $30 --> You pay 5% = $10
The great thing about having a Medicare Supplement is that Medicare is your primary insurer. This means you have no network constraints. You can go to any Hospital and see any doctor as long as a doctor takes Medicare and is taking new patients. Having Medicare as your primary with a supplement as your secondary also means no referrals to see a specialist. This gives you freedom of choice without an insurance company dictating where you can go and who you can receive care from.
If you have questions or are confused about what you will be liable for book a meeting with an agent. The goal is to lower your potential cost as low as possible while still receiving great medical care when you need it and give you peace of mind.
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