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Top Medicare Cost-Sharing Plans


A great alternative to higher premium Medigap plans is cost-sharing plans. These plans typically have a much lower premium. Cost-sharing plans include Plan L, Plan K, and Plan M.

Top Medicare Cost-Sharing Plans for 2021

The top two cost-sharing plans have identical benefits, the only difference is the level of cost-sharing.

Both policies have an annual out of pocket maximum; this protects you from outrageous medical bills by covering you 100% once the maximum is met.

The two most popular Medicare cost-sharing plans are Plan L and Plan K. While these policies aren’t included in the top 3 Medicare Supplements, they still offer value.

Not all carriers offer every plan, if you’re looking for a Medigap Plan K or Plan L, you would benefit from speaking to a licensed insurance agent that represents the top-rated insurance companies in your area.

Plan L Cost-Sharing

If your health is great, this option could be ideal for you. If you cover some of the costs, then, you get a lower monthly premium.

Plan L will cover 75% of the cost of covered medical expenses for most services. You’ll be responsible for the other 25 percent.

So, if the 20% not covered by Medicare is $100, you’ll only pay $25 and the plan will cover the other $75.

Additionally, you must cover the Part B deductible as well as any Part B excess charges.

Some potential beneficiaries worry this will lead to being nickel and dimed to death on copayments; however, this policy comes with an out of pocket maximum.

This annual limit is unique, and it’s something you won’t see on Plan N. Plan L is one of the top Medicare cost-sharing plans.

Plan L will cover Part A coinsurance at 100%.

Plan L includes these benefits at 75% coverage: 

  • First 3 pints of blood
  • Part A deductible
  • Skilled nursing facility co-insurance
  • Part B co-insurance
  • Part A Hospice co-insurance

Although, it’s important to understand Plan L won’t cover every benefit. This policy won’t cover your Part B deductible, Part B excess charges or foreign travel emergency care.

However, if you’re not traveling overseas, or visiting the doctor regularly, this plan could be just for you.

Enrolling in Plan L

There are many different Medigap companies on the market; unfortunately, 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.

Plan K Cost-Sharing

This policy is very similar to Plan L, instead of 75 percent of coverage, you’ll get 50%. In exchange for a lower premium, of course.

Just like Plan L, this policy includes a maximum out of pocket. This annual limit on cost-sharing basically provides you with a safety net.

You’re covered 100% on covered benefits when you reach the maximum out of pocket. Medigap Plan K is a top Medicare cost-sharing plan.

Medigap Plan K will cover 100% of the Part A coinsurance, just like Plan L.

Plan K includes these benefits at 50% coverage: 

  • First 3 pints of blood
  • Part A deductible
  • Skilled nursing facility co-insurance
  • Part B co-insurance
  • Part A Hospice co-insurance

However, Medigap Plan K doesn’t cover all benefits. This policy won’t cover your Part B deductible, Part B excess charges, or foreign travel emergency care.

Although, this plan could be for you if you’re health is good and overseas travel isn’t in your future.

Enrolling in Plan K

It’s not always simple to find online quotes for Plan K, especially since not all companies offer this policy. Our agents are Medicare experts and they can easily find the top coverage options for you.

This will save you time and money, at no added expense. Our agents offer their expertise to you, absolutely free. They will answer all your questions and comfort your concerns.

Then, they walk you through the enrollment process, making it easier than ever to have excellent coverage.

Deductible Sharing with Plan M

Plan M is one of the top Medicare cost-sharing plans since Plan M only requires you to cost-share on the Part A deductible. They cover 50% and you cover the other half.

Plan M will cover 100% on the following benefits: 

  • Part A Coinsurance & up to an additional 365 lifetime reserve days
  • Part B Coinsurance
  • First 3 Pints of Blood
  • Part A Hospice care
  • Foreign Travel Emergency
  • Skilled Nursing Facility Coinsurance

Plan M won’t cover the Part B deductible or Part B excess charges. However, you’ll be responsible for covering those costs.

Deductible sharing vs cost-sharing

Plan M requires you to cover a portion of the deductible. Plans L and K require you to pay a percentage of the coinsurance as well as the deductibles.

Therefore, if you’re only paying a percentage of the deductible then you’re on a deductible sharing policy. If you pay a portion of the coinsurance and a portion of the deductible, then your policy is a cost-sharing policy.

Although, if you don’t pay a portion of any of these, you may have first-dollar coverage.

Choose the Ideal Plan for You

Just researching policies can be intimidating; there are so many options and so many carriers. Well when you work with one of our Medicare experts, you have the luxury of quality care and superior convenience.

Whether you want to choose one of the top Medicare cost-sharing plans of 2021 or a first-dollar plan; working with an agent will benefit you.

Our agents can provide you with quotes and enrollment services right over the phone, just call the number above or fill out our online rate comparison form.

Lindsay Engle

Lindsay Engle is the Medicare expert for MedicareFAQ. She has been working in the Medicare industry since 2017. She is featured in many publications as well as writes regularly for other expert columns regarding Medicare. You can also find her over on our Medicare Channel on YouTube as well as contributing to our Medicare Community on Facebook.

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