What is a Medicare Cost Sharing Plan?

A Medicare Supplement cost-sharing plan can be an excellent alternative for those looking to avoid higher premiums. Also known as Medigap plans, there are 12 different lettered options, but when it comes to Medicare cost-sharing plans, you’ll typically enjoy a much lower premium. Medicare Supplement cost-sharing plans include Plan L, Plan K, and Plan M. Learn more about each option, if you can benefit from them, and how to sign up.

A Medicare cost-sharing plan is a type of Medicare Supplement coverage that can help beneficiaries enjoy generous benefits while cutting their monthly premium. Medigap cost-sharing plans can be great options for those who do not often require healthcare services. While the premiums are lower, it’s important to note that these coverage options require beneficiaries to cover costs associated with their healthcare, including:

Deductibles

Coinsurance

The two most popular Medicare cost-sharing plans are Medicare Supplement Plan L and Plan K. Both have identical benefits but different cost-sharing levels. Each also has an annual out-of-pocket maximum, which protects you from outrageous medical bills by covering 100% of your healthcare costs once the maximum is met.

Everyone’s healthcare and budget needs will differ, and one of the great things about Medigap plans is that there are varying levels of benefits to help you find benefits that match your individual needs.

While Medicare cost-sharing plans aren’t included in the best Medicare Supplement plans, they still offer value. Not all carriers offer every plan option, but if you’re looking for a Medigap Plan K or Plan L, speak to a licensed insurance agent that represents the top-rated insurance companies in your area.

While Plan L will cover 75% of the cost of covered medical expenses for most services, you’ll be responsible for the other 25%. For example, if 20% not covered by Original Medicare is $100, you’ll only pay $25, and your Medicare Supplement Plan L benefits will cover the other $75.

Additionally, you must cover the Part B deductible and any Part B excess charges that apply. While some may worry this will lead to being nickel and dimed to death on copayments, safeguards are in place. When you enroll in Medigap Plan L benefits, there is also an out-of-pocket maximum that applies.

This annual limit is unique to Plan L and a feature not available on Medigap Plan N. Medicare Supplement Plan L is one of the top Medicare cost-sharing plans because it covers Part A coinsurance at 100% and includes the following benefits at 75% coverage:

To enroll in Medicare Supplement Plan L, you’ll need to contact a licensed Medicare insurance agent. Here at MedicareFAQ, our agents are experts and ready to help you find the coverage you need.

There are many different Medigap companies on the market, but not all companies offer Medigap Plan L. If you work with one of our licensed insurance experts, you can minimize the effort and time put into finding the ideal company and price.

Our agents specialize in Medicare, their advice doesn’t cost anything, and they even walk you through the enrollment process. Furthermore, rather than trying to sell you a policy, our team is here to help match you with the best benefits that match your specific needs for your healthcare and your budget.

Medicare Supplement Plan K is very similar to Plan L, but instead of 75% coverage, you’ll get 50%. While this means you’ll be responsible for more out-of-pocket costs when receiving healthcare services, you’ll also enjoy a lower premium as a result.

Medigap Plan K is a top Medicare cost-sharing plan, and just like Plan L, Medicare Supplement Plan K includes a maximum out-of-pocket, limiting the amount you’ll have to pay annually. Your benefits cover you 100% on Medicare-approved healthcare services when you reach your maximum out-of-pocket.

Medigap Plan K will cover 100% of your Part A coinsurance, just like Plan L, and also includes the following benefits at 50% coverage: