The short answer
Most people compare Medigap Plan G and Plan N, but there are lower-premium lettered plans worth knowing: Plans K, L, and M. Instead of covering the gaps in full, these share the cost with you — you pay a portion of certain Medicare costs, and in exchange the premium is lower. Plans K and L even include an annual out-of-pocket limit, after which they cover everything.
They're not for everyone, but for budget-focused people who want a supplement with a safety cap, they can be a sensible middle ground.
How K, L, and M differ
Plan K covers a smaller share of some costs (like coinsurance and the Part A deductible) and has the highest out-of-pocket limit of the group, with the lowest premium. Plan L covers a larger share with a lower out-of-pocket limit. Plan M splits the Part A deductible with you and doesn't have the same out-of-pocket cap structure. Once you hit the annual limit on K or L, the plan pays 100% for the rest of the year.
The tradeoff is straightforward: lower premium, more cost-sharing until you reach the cap. Our complete guide to Medigap plan letters lays out every plan side by side.
Who they fit
These plans suit people who want lower monthly premiums, are comfortable sharing some costs, and value the annual out-of-pocket cap that K and L provide as protection against a bad year. Someone who wants near-zero costs at the point of care will still prefer Plan G; someone prioritizing a low premium with a safety net may prefer K or L.
As with all Medigap, the letters are standardized, so shop the same letter across insurers for the best price. Our Medicare Supplement overview helps you compare.
Frequently Asked Questions
What are Medigap Plans K, L, and M?
They're lower-premium Medicare Supplement plans that share costs with you instead of covering gaps in full. Plans K and L include an annual out-of-pocket limit, after which they pay 100%.
Why are Plans K and L cheaper?
Because they cover a smaller share of certain Medicare costs, leaving you to pay part until you reach the annual out-of-pocket limit. Lower coverage means a lower premium.
Who should consider these plans?
Budget-focused people comfortable with some cost-sharing who still want a safety net — the annual out-of-pocket cap on K and L protects against a high-cost year.
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