Medicare 2026

Medigap Plans K and L in 2027: Out-of-Pocket Limits Rise to $8,360 and $4,180

If you have — or are considering — a Medicare Supplement Insurance policy known as Plan K or Plan L, there's a yearly number worth knowing: the out-of-pocket limit. The Centers for Medicare & Medicaid Services (CMS) announced in October 2026 that for calendar year 2027, Plan K's limit will be $8,360 (up from $8,000 in 2026) and Plan L's will be $4,180 (up from $4,000 in 2026). Here's what that means in plain English, and how these two plans fit into the broader Medigap picture.

How Plans K and L work

Medigap policies help pay some of the costs that Original Medicare (Part A and Part B) leaves to you — things like coinsurance, copayments and deductibles. Plans K and L are two of the standardized Medigap options. They share a distinctive design: instead of covering most cost-sharing at 100% from day one, they pay a percentage, and you pay the rest — until you reach a yearly out-of-pocket limit. After that, and once you've met your yearly Part B deductible ($283 in 2026), the plan pays 100% of covered services for the remainder of the calendar year.

Until you reach that limit, Plan K pays 50% and Plan L pays 75% of:

• The Part B coinsurance or copayment
• The first 3 pints of blood
• Part A hospice care coinsurance
• Skilled nursing facility care coinsurance
• The Part A deductible

Both plans pay 100% of Part A coinsurance and hospital costs for up to an additional 365 days after your Medicare benefits are used.

Neither plan covers the Part B deductible, Part B excess charges, or foreign travel emergency care. If any of those matter to you, factor that in when comparing options.

Why the limits went up

The out-of-pocket limits for Plans K and L aren't set arbitrarily. Under section 1882(w)(2) of the Social Security Act, the 2006 starting points were $4,000 for Plan K and $2,000 for Plan L, with an annual inflation adjustment. For 2027, CMS based the adjustment on its estimates of Medicare's per capita costs for Parts A and B — which is why the Plan K limit moved from $8,000 to $8,360 and Plan L's moved from $4,000 to $4,180.

A note on the high-deductible versions of Plans F and G

For context — not as a recommendation — CMS also announced that the deductible for the high-deductible versions of Plans F and G (offered in some states) is $3,050 for 2027, up from $2,950 in 2026. Once that high deductible is met, the plan covers all remaining Medicare cost-sharing for the rest of the year. These are separate plan letters with different designs; they're mentioned here only because they were announced in the same update.

Comparing Plan K to Plan K (and Plan L to Plan L)

In most states, Medigap policies with the same letter offer the same basic benefits regardless of which insurance company sells them — so two Plan K policies cover the same things, and the main difference is price (and customer service). Three states standardize Medigap policies differently, so if you live in one of them, check how your state's plans are structured. Specific premiums and availability vary and change over time; Medicare.gov's plan finder is the place to see what's offered where you live.

How Medigap fits with the rest of your Medicare choices

People new to Medicare generally weigh two broad paths: Original Medicare (often paired with a Medigap policy and a stand-alone Part D drug plan) or a Medicare Advantage plan (which bundles Parts A and B, usually includes drug coverage, and may offer extra benefits but typically uses provider networks). Each path has trade-offs around cost predictability, provider choice, extra benefits, and paperwork. There's no one-size-fits-all answer — your health, budget, preferred doctors, and travel habits all matter.

A few program-wide numbers to keep in mind for 2027:

• Part D out-of-pocket cap: $2,400 (up from $2,100 in 2026).
• Maximum Part D deductible any plan may charge: $700.
• Part D base beneficiary premium: $41.33 (used in calculating the late-enrollment penalty; actual plan premiums are set plan by plan).
• Social Security COLA: 3.6% for benefits payable beginning January 2027.

The 2027 Part B standard premium and deductible, along with the IRMAA income brackets and surcharges, had not been announced at the time of this writing. CMS typically announces them in the fall — usually November.

Enrollment windows worth marking

Medicare's Annual Enrollment Period runs October 15 – December 7, 2026, with changes taking effect January 1, 2027. If you have Medicaid or qualify for Extra Help (the low-income subsidy for Part D), since 2025 you've had a monthly Special Enrollment Period to move to Original Medicare paired with a stand-alone Part D plan, or to switch stand-alone Part D plans. People who are full-benefit dual-eligible can also join an integrated Dual Eligible Special Needs Plan (D-SNP) in any month.

Where to go next

For official information on Medigap rules, plan letters, and what's offered in your area, visit Medicare.gov or call 1-800-MEDICARE (1-800-633-4227), TTY 1-877-486-2048, 24 hours a day, 7 days a week. Taking a little time to review the details before January can help you head into 2027 with coverage that fits your situation.