Plans K and L: cost sharing with an out-of-pocket cap

How Medigap Plans K and L split costs with you, the 2026 out-of-pocket limits, and when they make sense instead of Plan G or N.

Most Medigap plans either cover a gap fully or not at all. Plans K and L are different: they cover a percentage of most gaps, then 100% once you reach an annual out-of-pocket limit. For 2026 those limits are $8,000 for Plan K and $4,000 for Plan L.

How the sharing works

Plan K pays 50% of the Part A deductible, Part B coinsurance, blood, hospice and skilled nursing coinsurance.
Plan L pays 75% of the same items.
Both pay 100% of Part A hospital coinsurance and the extra 365 hospital days.
Neither pays the Part B deductible or excess charges.
Once your share reaches the limit, the plan pays 100% for the rest of the year.

Your share rises with costs until the 2026 cap. The Part B deductible is paid first and also counts toward the limit.

Who they suit

People who want protection against a catastrophic year but would rather keep premiums low than have every small bill covered. Plan L, with its lower cap and higher share, sits between K and Plan G.

The catch

The caps are much higher than high-deductible Plan G's $2,950, and premiums for K and L are not always much lower than Plan N. Compare all four on the same insurer's rate sheet before choosing. In some areas Plan N or high-deductible G gives better protection per dollar of premium.

Using them with a Health Savings Account

You cannot contribute to an HSA once you enroll in any part of Medicare, but you can spend existing HSA money on Medicare premiums (not Medigap premiums) and on out-of-pocket costs. People with large HSA balances sometimes pair a lower-premium plan like K, L or high-deductible G with HSA spending.

For a broader view of 2026 costs that these plans fill, see Medicare costs at a glance.

Questions people ask

What are the 2026 Plan K and L limits?

$8,000 for Plan K and $4,000 for Plan L.

Do K and L cover the Part B deductible?

No, but it counts toward the out-of-pocket limit.

Do K and L cover excess charges?

No.

Are K and L popular?

They are less common than G and N, but useful for budget-focused buyers who want a cap.

Independent educational site. Not affiliated with or endorsed by the U.S. government, the federal Medicare program, or any insurance company. Figures are 2026 amounts published by CMS unless noted; check Medicare.gov for your situation.