As more Medicare beneficiaries search for lower cost Medicare Supplement options, Plans K and L are getting more attention, but many people don’t fully understand the cost-sharing and coverage limits that come with these plans. Medicare Supplement Plan K and Plan L generally have lower monthly premiums compared to other Medigap plans, but they also come with higher out-of-pocket costs. Plus the annual caps are presented in a misleading manor. This article explains how Plan K and Plan L work, what they cover and what they don’t, and what those lower premiums really mean when it comes to the care you may need. Understanding these trade-offs is key before deciding if Plan K or Plan L is the right fit for your Medicare coverage.
Key Takeaways:
Medicare Supplement Plan K and Plan L are low-cost alternatives to full coverage Medicare supplement plans, offering budget-friendly options for those looking to manage their healthcare expenses, increase Original Medicare coverage and avoid Medicare Advantage plans.
Both plans cover 100% of the Part A coinsurance and hospital costs, including inpatient admission, providing protection against high hospital bills.
These supplement plans also pay a portion of the Part A deductible 50% for Plan K and 75% for Plan L, helping to manage out-of-pocket hospital expenses.
Unlike some other plans, Plans K and L cover only a percentage of certain benefits such as Part B coinsurance or copayment, hospice care coinsurance, and skilled nursing facility care until you reach the annual out-of-pocket limit.
Plan K has a higher out-of-pocket limit ($8,000 in 2026) compared to Plan L ($4,000 in 2026), which means Plan L offers more financial protection once that limit is reached. keep in mind, these annual out-of-pocket limits increase each calendar year along with the CPI-U.
Neither Plan K nor Plan L covers the Medicare Part B deductible or excess charges, so enrollees should be prepared for these additional costs.
Medicare costs not covered by these plans are not included in the maximum out-of-pocket limit.
These plans do not provide foreign travel emergency coverage, which may be a consideration for frequent travelers.
Both plans typically have lower monthly premiums than more comprehensive plans like Plan G or Plan N, making them attractive for individuals seeking to minimize premium costs.
When comparing Plans K and L, the choice often comes down to balancing lower premiums (Plan K) against lower potential out-of-pocket costs (Plan L).
Those seeking more extensive coverage with similar or lower premiums might want to consider the Plan G High Deductible (Plan G-HD), which offers better total coverage and a lower overall cost. The maximum out-of-pocket limit on the Plan G-HD is the amount of that supplements deductible.
It is important to compare quotes from different insurance companies as premiums and availability can vary by location.
Ultimately, selecting the right plan depends on your health needs, budget, and how much risk you are willing to take with potential out-of-pocket expenses.
Medigap Seminars Insurance Agency Reviews.
What Is A Medicare Supplement?
Medicare Supplement Plans (aka Medigap Plans), including Plan C, are health insurance plans that build on your Original Medicare benefits. Medigap policies were created to cover some of the gaps in Medicare coverage, such as deductibles, coinsurance, and co-payments.
There are 10 standardized Medigap plans available: A, B, C, D, F, G, K, L, M, and N. Plan D is one of these options and, unlike some other plans such as Plan C, does not cover the Medicare Part B deductible. This makes Plan D different from plans like C, G, M, and N, each of which has its own unique coverage features.
The cost and availability of Medigap policies may vary by state and by private insurance companies, making it essential to compare Medigap policies.
Do Medicare Supplement Companies Offer All Medigap Plans?
No, insurance companies are not required to offer all Medicare supplements. However, they need to offer at least Medicare Plan A if they wish to participate in the supplement market.
There are 10 Medigap plans (Plan A, B, C, D, F*, G*, K, L, M, and Plan N), and each plan provides a different combination of benefits, known as Medigap plan benefits, as they pay for the deductibles and copays left as your responsibility if you have just Medicare Part A and Part B. You can learn more about the differences between Medicare Advantage and Medigap plans. You can view the table of Medigap benefits showing all the plans on our Resources page.
On average across the country 97% of Medicare supplement insurance companies offer Plan G and Plan F, which provide many basic benefits. 94% offer Plan N. 45% offer Plan G-High Deductible. 16% offer Plan L. 13% offer Plan K. *Both Plan G and Plan F have a high deductible option
Let’s have a look at two plans, K and L.
Medicare Supplement Plan K and L Pros
1) Lower monthly premiums
Medigap Plans K and L typically have lower premiums than some of the other more popular Medigap plans, like Plans G and N, while also covering nursing facility care coinsurance .
2) Full inpatient hospital coverage
Both Medicare Supplement Plan K and Medicare Supplement Plan L cover 100% of the Medicare Part A coinsurance and hospital costs, including expenses related to inpatient admission but not including the Part A deductible. They will pay a portion of the Part A deductible.
3) All the benefits of Original Medicare.
When coupled with the advantages of Original Medicare, your Plan K and Plan L Medigap options offer more freedom and a lower financial risk than most Medicare Advantage Plans. You don’t have to worry about being denied coverage by an insurance company.
Medicare Supplement Plan K and L Cons
1) Higher out-of-pocket costs
Medicare Supplement Plan K & Medicare Plan L have lower monthly premiums compared to some other Medigap plans; however, the trade-off for a lower monthly premium is higher out-of-pocket cost sharing. In addition to being responsible for Part B Excess charges and the Part B deductible, the consumer has a maximum annual out-of-pocket risk that is higher than any other Medicare supplement plans. The maximum out of pocket limit resets and often increases every calendar year.
2) Limited coverage
Medicare Supplement Plan K & L only cover 50% and 75% respectively of some of the Medicare-covered costs, meaning each plan covers a specific percentage of expenses like the Part B coinsurance, Part A hospice care coinsurance, and skilled nursing care, but does not cover the Part B deductible or excess charges. This means more out of pocket expenses than found in other plans as well as a higher maximum out of pocket limit.
3) No coverage for Part B excess charges
Neither Medigap Plan L or Plan K cover Medicare Part B outpatient excess charges, which are charges from healthcare providers that exceed the Medicare-approved amount. An excess charge is the amount a provider can legally charge above the Medicare-approved amount for a covered service. This means that if you go to a doctor or hospital that charges more than the Medicare-approved amount, you will be responsible for paying the difference out of pocket. Your Medigap policy will not cover those expenses.
4) No Foreign Travel Emergency Coverage
Unlike many of the other supplement plans, covered services for Plans K & L do not include coverage for foreign travel emergencies or emergency room visits . While not the most important feature, if you have the need for a Medicare plan that helps during doctor office visits while traveling, these plans are of no use.
It’s important to also note that the out of pocket limit shown in the Medigap Table of benefits for these two plans is not all inclusive. What is not covered (i.e. Excess Charges and Part B Deductible) does NOT count toward maximum out of pocket limit.
Compare Medigap Plan G-HD to Plans K & L
Plan G-HD is the most popular low premium Medigap plan. It’s the more popular Medicare supplement plan because it has greater insurance coverage at a lower cost than Plan K or Plan L. While Plan G-HD has a high deductible, it covers 100% of the same coverage benefits as Plan G once the deductible is met. The Plan G-HD deductible is the maximum annual out of pocket limit for that supplement. Plans K and L provide less coverage and have a higher out-of-pocket limit compared to Plan G-HD, covering only a percentage of certain costs such as care coinsurance or copayment, including Part B coinsurance or copayment, blood, hospice care, and skilled nursing facility coinsurance, until you reach the out-of-pocket limit.
Because the G-HD is in higher demand and offered by more insurance companies, the price is more in line with its benefits and often provides a better value.
However, both the high deductible Medigap plan and the Plans K & L are still sensitive to inflation. The reason for this is that the maximum out of pocket of Medigap plan K and Medigap plan L will generally increase each year. This means your potential out of pocket healthcare costs increase as well.
Plan G-high deductible and Plan F-high deductible respond in a similar fashion. The deductible for these plans, which serves as your Medicare supplement plan maximum out of pocket costs, increases each year with the percent change in the Consumer Price Index.
The Full Coverage Medicare Supplement Insurance Plan
As I stress in my “Best Medicare Supplement Plan” video, which plan is best for you is a personal decision. Only you can decide which plan is best suited to your needs and preferences. It should be based on both immediate and lifetime costs as well as how much effort you wish to put into your Medicare. For more information, you can compare your employer plan to Medicare to help inform your decision.
A Medigap policies allow you to keep the most important Medicare benefits; you can see any doctor that accepts Medicare in the US and territories, plus no insurance company can deny or delay your care. Your healthcare is between you and your doctor.
As you shop for a Medigap policy , consider that a Plan N may be a better value over your lifetime. In most states the premium is nearly the same as a Plan K or L, but it offers more coverage and historically more stable premiums.
At Medigap Seminars we offer all Medicare supplement plans from all the major insurance carriers. We help our clients choose the right plan and right insurance company for your benefits and your needs. Contact Us today to see how we can help.
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Footnotes & Legend
- ✓ Covered. ✕ Not covered. Percentages show how much the plan pays.
- * High-deductible versions may be available for Plans F and G.
- ** Out-of-pocket limits apply only to Plans K and L.
- *** Plan N pays Part B coinsurance except: up to $20 office visit & up to $50 ER if not admitted.
Compare Medigap Plan K & L Cost
When comparing the costs of Medicare Supplement Plan K and Plan L, there are a few key factors to consider. Both plans generally offer lower monthly premiums compared to more comprehensive Medigap plans like Plan G or Plan N, making them attractive options for those looking to save on premium expenses and hospital costs .
Plan K typically has the lowest monthly premiums among the two, but it also comes with higher out-of-pocket costs due to its 50% coverage of certain benefits such as Part B coinsurance or copayment, skilled nursing facility care, and hospice care coinsurance. Plan L offers a bit more coverage, paying 75% of these costs, which is reflected in slightly higher premiums than Plan K.
Both plans have annual out-of-pocket limits that cap your spending on covered healthcare costs for the year—$8,000 for Plan K and $4,000 for Plan L in 2026. Once you reach these limits, the plans cover 100% of Medicare-approved services for the rest of the calendar year. Compare this to a 2026 maximum out of pocket of $2,950 for the Plan G-HD.
It’s important to note that neither Plan K nor Plan L covers the Medicare Part B deductible or excess charges, which means you will be responsible for these medical expenses out of pocket. Additionally, these plans do not provide coverage for foreign travel emergency care. Neither plan covers prescription drugs, so enrollees should consider purchasing a separate Medicare Part D plan to help with medication costs.
Choosing between Plan K and Plan L often comes down to balancing lower monthly premiums with potential out-of-pocket costs, including those for doctor visits. Plan K may be suitable for those who are generally healthy and want to minimize monthly payments, while Plan L provides more coverage and a lower out-of-pocket maximum, which may be better for those who anticipate more healthcare needs.
When evaluating costs, also consider that premiums and out-of-pocket limits can vary by insurer and location, so comparing quotes from private insurance companies offering these Medicare supplement insurance plans is essential to find the best fit for your health care and budget.
Contact Medigap Seminars for Help with Medicare Enrollment
Navigating Medicare enrollment and choosing the right Medicare Supplement plan can be complex. Learn more about how and when to sign up for Medicare and Medigap Seminars is here to help you understand your options and find the plan that best fits your healthcare needs, budget, and offers potential extra benefits. Our experienced team offers personalized guidance to ensure you make informed decisions about your Medicare coverage.
Whether you are new to Medicare or looking to switch plans, we provide comprehensive support throughout the enrollment process. We work with all major insurance carriers and offer access to a wide range of Medicare supplement insurance plans, including Plans K and L.
Don’t navigate Medicare alone—contact Medigap Seminars today to schedule a consultation. Let us help you secure the coverage you need for peace of mind and better health care.
