Medigap Plan K vs Plan L: Lower Premium Options Explained

If you are comparing Medigap Plan K vs Plan L, you are probably looking for a Medicare Supplement plan with a lower monthly premium without giving up every layer of protection. Plans K and L work differently from popular options such as Plan G and Plan N. Instead of covering most approved cost sharing in full, they split more costs with you during the year and place a yearly ceiling on what you pay for covered services.

Want help comparing lower-premium Medigap choices in your area? Contact a Medicare insurance broker at The Big 65 for personalized guidance.

This guide explains how Plan K and Plan L differ, what each plan covers, how the 2026 out-of-pocket limits work, and when a more comprehensive option such as Medicare Supplement Plan G or Medicare Supplement Plan N may fit better.

What are Medigap Plan K and Plan L?

Medigap Plan K and Plan L are standardized Medicare Supplement plans that work with Original Medicare. Like other Medigap plans, they help pay certain out-of-pocket costs that Medicare Parts A and B leave behind. Their defining feature is cost sharing. Plan K generally pays 50% of several covered benefits, while Plan L generally pays 75% of those same benefits.

That tradeoff can create a lower premium than richer Medigap plans, but it also means you may pay more when you receive care. In practical terms, Plan K is the leaner, lower-coverage option. Plan L offers a middle ground by paying a larger share of covered costs, usually in exchange for a higher premium than Plan K.

Both plans still include an important safeguard that many Medigap plans do not use in the same way: an annual out-of-pocket limit for covered cost sharing. For 2026, CMS set those limits at $8,000 for Plan K and $4,000 for Plan L. After you meet the yearly limit and the Medicare Part B deductible, the plan pays 100% of covered services for the rest of the calendar year.

Medigap Plan K vs Plan L at a glance

Because Medigap benefits are standardized, a Plan K from one insurance company covers the same standardized benefits as a Plan K from another carrier. The same is true for Plan L. The carrier decision usually comes down to premium, underwriting rules when applicable, and customer service.

How does Plan K cost sharing work?

Plan K is built for someone who wants the lowest premium among these two cost-sharing options and is comfortable handling a larger share of covered expenses during the year. It fully covers the Part A hospital coinsurance benefit after Medicare benefits are used, but several other listed benefits are paid at 50%.

For example, if a covered Part B coinsurance amount is $100 after Medicare processes the claim, Plan K may pay $50 and you may be responsible for the remaining $50, subject to the plan’s rules and your annual limit. The same 50% framework applies to areas such as the first three pints of blood, Part A hospice cost sharing, skilled nursing facility coinsurance, and the Part A deductible.

The 2026 Plan K out-of-pocket limit is $8,000. That limit can be reassuring if you want some ceiling on covered cost sharing, but it is still a high threshold. Someone who uses care regularly may reach a point where the lower monthly premium no longer feels like the best value.

How does Plan L cost sharing work?

Plan L follows the same basic design as Plan K, but it pays a larger share of several benefits. Instead of a 50% split, Plan L generally pays 75% for the listed cost-sharing categories. You usually pay less at the point of care than you would with Plan K, but the monthly premium may be higher.

Plan L also has a lower 2026 annual out-of-pocket limit of $4,000. That lower ceiling can matter for beneficiaries who still want a lower-premium Medigap structure but prefer a tighter cap on covered annual cost sharing. In short, Plan L tends to appeal to people who like the cost-sharing concept but want a more protective version of it.

Not sure whether a lower premium or a lower yearly risk matters more? Talk with The Big 65 to compare Medigap options side by side.

Why do Plans K and L often have lower premiums?

Monthly premiums are only one part of the Medigap decision. Plans K and L can be priced lower than richer plans because you agree to shoulder more cost sharing when you use care. An insurer has less claim exposure upfront when a policyholder pays 25% or 50% of certain covered amounts, so the premium may be lower than plans that absorb nearly all standardized cost sharing.

That structure can work well for a person who:

• Wants to keep monthly insurance costs down.
• Understands that a lower premium does not always mean a lower total annual cost.
• Has savings available for cost sharing if medical needs increase.
• Prefers having an annual out-of-pocket cap instead of leaving Original Medicare cost sharing uncapped.

It may be a weaker fit for someone who wants highly predictable bills, sees multiple specialists, expects frequent outpatient services, or would worry about paying several thousand dollars in a difficult health year.

What costs are still not covered by Plan K or Plan L?

Neither Plan K nor Plan L covers every Medigap benefit. Both plans leave out:

• The Medicare Part B deductible.
• Part B excess charges.
• Foreign travel emergency benefits.

They also do not replace Original Medicare or work with Medicare Advantage. Medigap is designed to pair with Original Medicare, not Part C. Prescription drug coverage is separate as well, so many people with Medigap also evaluate a Medicare Part D drug plan.

If you want a broader overview of the standardized Medigap lineup, see The Big 65’s 2026 Medicare Supplement plan comparison.

Plan K vs Plan L vs Plan G and Plan N

Plans K and L are usually considered by shoppers who are especially premium sensitive. Plans G and N tend to attract people who want stronger day-to-day predictability.

If you mainly want predictable medical spending, Plan G may be worth a closer look. If you want a lower premium than Plan G and are comfortable with specific copays and some uncovered charges, Plan N may be the comparison point. If your top goal is trimming monthly premium and you accept more yearly exposure, Plans K and L become more relevant.

Who might prefer Medigap Plan K?

Plan K may fit someone who prioritizes the lowest premium of these two options and sees the annual limit as a backstop rather than a target. It can also appeal to a shopper who understands that covered expenses may be more noticeable in years with more care and still feels comfortable accepting that risk.

Plan K may deserve consideration if you:

• Want a lower-premium Medigap path.
• Can handle higher cost sharing if care needs rise.
• Do not need foreign travel emergency coverage through Medigap.
• Are comparing Plan K with going without a supplement and want more protection than Original Medicare alone.

Who might prefer Medigap Plan L?

Plan L may be the better compromise for someone who likes the lower-premium philosophy but wants a stronger benefit split and a lower out-of-pocket limit than Plan K. It often serves shoppers who are still cost conscious but less comfortable with Plan K’s 50% cost-sharing arrangement.

Plan L may make more sense if you:

• Want more claims protection than Plan K.
• Prefer the lower 2026 out-of-pocket limit of $4,000.
• Expect to use enough care that the 75% coverage level feels meaningful.
• Still want to compare premiums against Plan N before deciding.

How should you compare Plan K and Plan L quotes?

Start by looking beyond the monthly premium. A useful comparison weighs premium, likely care use, and the worst-case covered annual exposure represented by the out-of-pocket limit. Two people may view the same Plan K quote very differently. One may value the premium savings. Another may see the $8,000 limit and decide the risk is too high.

1. Compare monthly premiums in your ZIP code. Rates vary by location, age, tobacco use, household discounts, and carrier pricing.
2. Estimate how often you use Medicare-covered care. Frequent visits and recurring services make cost sharing more important.
3. Review the 2026 out-of-pocket limits. Plan K and Plan L have very different annual caps.
4. Check benefits you value. If Part B excess charge coverage or foreign travel emergency coverage matters, K and L may not be your finalists.
5. Compare against Plan G and Plan N. A plan that looks cheapest monthly can be less attractive once you map the yearly tradeoffs.

Ready to compare real quotes instead of guessing from averages? Request help from The Big 65 and review your Medicare Supplement options with a broker.

When can you enroll in Plan K or Plan L?

The strongest time to evaluate any Medigap plan is usually your Medigap Open Enrollment Period. This six-month window begins when you are age 65 or older and enrolled in Medicare Part B. During that period, insurers generally cannot use medical underwriting to deny you a Medigap policy or charge more because of health conditions.

Outside of that window, your rights and pricing can vary based on state rules, guaranteed issue situations, and carrier underwriting. Because timing matters, it is wise to compare plans before your enrollment window closes rather than waiting until you need more care.

Bottom line: Is Plan K or Plan L better?

Neither plan is automatically better for everyone. Plan K generally fits someone who wants the lower premium and accepts more cost sharing plus a higher $8,000 annual limit in 2026. Plan L generally fits someone who still wants a cost-sharing Medigap plan but prefers 75% coverage on several benefits and a lower $4,000 annual limit.

If your biggest concern is monthly premium, compare Plan K first. If your biggest concern is reducing annual risk while avoiding the richer premium structure of Plan G, compare Plan L. And if you want the most predictable costs, do not skip a review of Plan G and Plan N before choosing.

The right answer depends on your budget, your comfort with medical bills during the year, and the quotes available where you live.