Medicare Supplement Plan L
75% Cost-Sharing with a Built-In Out-of-Pocket Maximum
What Is Medicare Supplement Plan L?
Medicare Supplement Plan L is one of two Medigap plans with a built-in out-of-pocket maximum. It covers 75% of most Medicare cost-sharing, and once you reach the annual out-of-pocket limit ($4,000 in 2026), the plan covers 100% of Medicare-approved costs for the rest of the year.
Plan L's defining feature is its out-of-pocket maximum. While you're responsible for 25% of most Medicare cost-sharing, your total exposure is capped at $4,000 per year (2026). This provides meaningful protection against catastrophic medical costs.
Plan L premiums are typically lower than Plan G or Plan N, making it an option for people who want some cost-sharing protection without paying for comprehensive coverage. However, the 25% cost-sharing can add up if you have frequent medical needs before hitting the $4,000 OOP max.
Key Highlights
- Built-in out-of-pocket maximum ($4,000 in 2026)
- Covers 75% of most Medicare cost-sharing
- Lower premiums than Plan G or Plan N
- Once you hit the OOP max, Plan L covers 100% of covered costs
- Does NOT cover foreign travel emergency
What Does Plan L Cover?
Part A hospital coinsurance & costs (up to 365 days after Medicare benefits)
Part A hospice care coinsurance or copayment
75% covered
Part A deductible ($1,736 in 2026)
75% covered ($1,257)
Part B coinsurance or copayment
75% covered
Part B excess charges
Part B deductible ($283 in 2026)
Blood (first 3 pints)
75% covered
Skilled nursing facility coinsurance
75% covered
Foreign travel emergency
All Medigap plans are standardized by federal law. Benefits are identical regardless of which insurer you choose.
Plan L Pros & Cons
Pros
- ✓ Out-of-pocket maximum provides catastrophic cost protection
- ✓ Lower premiums than more comprehensive plans
- ✓ Good protection against worst-case scenarios
- ✓ Available to all new Medicare enrollees
Cons
- ✗ You pay 25% of most Medicare cost-sharing until you hit the OOP max
- ✗ No foreign travel emergency coverage
- ✗ No Part B excess charge coverage
- ✗ More complex cost-sharing than Plan G or Plan N
Frequently Asked Questions
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