Medigap Plan L is a cost-sharing Medicare Supplement Insurance option that covers 6 of the 9 standardized Medigap benefits. It provides broader protection than Plan K and includes an annual out-of-pocket limit, making it appealing for beneficiaries who want lower premiums with financial safeguards.
What Makes Plan L Different?
Plan L pays 75% of most covered benefits and sets an annual out-of-pocket maximum. In 2025, the limit is $3,610. Once you spend this amount on covered Medicare costs, Plan L pays 100% of eligible expenses for the rest of the year. This makes it one of only two Medigap plans with an out-of-pocket cap (the other is Plan K).
What Does Plan L Cover?
Plan L provides full coverage for hospital coinsurance and 75% coverage for many other benefits:
- 100% covered: Medicare Part A coinsurance and hospital costs (up to 365 additional days)
- 75% covered: Medicare Part B coinsurance or copayment
- 75% covered: First 3 pints of blood
- 75% covered: Part A hospice care coinsurance/copayment
- 75% covered: Skilled nursing facility coinsurance ($209.50/day in 2025 after day 20)
- 75% covered: Medicare Part A deductible ($1,632 in 2025; you pay $408)
What Plan L does not cover:
- Medicare Part B deductible ($257 in 2025)
- Medicare Part B excess charges
- Foreign travel emergency care
Plan L in Action
Plan L lowers premiums by requiring you to share in more costs. For example, if you face a $200 Medicare Part B coinsurance bill, Plan L pays $150 and you pay $50. If you are hospitalized, the plan pays 75% of the Part A deductible, leaving you with $408 to pay per benefit period. Once you reach the $3,610 annual limit in 2025, the plan pays 100% of covered costs.
Plan L vs. Other Medigap Plans
- Plan K: Similar to Plan L but covers only 50% of most benefits. It has a higher out-of-pocket maximum ($7,060 in 2025).
- Plan N: Covers more benefits in full but requires copays for office and ER visits and does not have an out-of-pocket cap.
- Plan G: More comprehensive, covering nearly everything except the Part B deductible.
How Common Is Plan L?
Plan L is not widely used. Only about 15% of insurers offer it, and less than 1% of beneficiaries are enrolled nationwide. Availability varies by state.
When to Enroll
The best time to enroll in Plan L is during your Medigap Open Enrollment Period. This 6-month window begins when you turn 65 and are enrolled in Medicare Part B. During this time, insurers cannot deny you coverage or raise your rates due to health conditions.
If you apply outside this window, you may face medical underwriting unless you qualify for a guaranteed issue right.
Compare Plan L to Other Medigap Options
Use the chart below to see how Plan L compares to all other standardized Medigap plans.
Benefits offered by each Medigap plan
Compare the benefits of each lettered plan to help you find one that meets your needs now and in the future. You might not be able to switch Medigap policies later.
✔ = Plan covers 100% ✘ = Plan doesn’t cover % = Amount the plan covers
| Benefits | A | B | C | D | F | G | K | L | M | N |
|---|---|---|---|---|---|---|---|---|---|---|
| Part A coinsurance & hospital costs | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| Part B copays/coinsurance | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | 50% | 75% | ✔ | ✔ |
| Blood (first 3 pints) | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | 50% | 75% | ✔ | ✔ |
| Part A hospice | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | 50% | 75% | ✔ | ✔ |
| Skilled nursing facility | ✘ | ✘ | ✔ | ✔ | ✔ | ✔ | 50% | 75% | ✔ | ✔ |
| Part A deductible | ✘ | ✔ | ✔ | ✔ | ✔ | ✔ | 50% | 75% | 50% | ✔ |
| Part B deductible | ✘ | ✘ | ✔ | ✘ | ✔ | ✘ | ✘ | ✘ | ✘ | ✘ |
| Part B excess charges | ✘ | ✘ | ✔ | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ | ✔ |
| Foreign travel emergency | ✘ | ✘ | 80% | 80% | 80% | ✘ | ✘ | ✘ | 80% | 80% |
| $7,220 | $3,610 | |||||||||
Next Steps
If you want lower premiums with added peace of mind from an annual out-of-pocket cap, Plan L may be the right choice. Compare premiums in your area with our Compare Rates tool or speak with a licensed insurance agent for personalized guidance.