Original Medicare doesn’t cover all healthcare costs. Medicare Supplement Plan L helps cover those extra costs by providing out-of-pocket limits on your healthcare spending.

Medicare Supplement Plan L is one of two Medicare supplement (Medigap) plans that include yearly out-of-pocket limits. The other is Medicare Supplement Plan K.

After you meet your yearly Part B deductible and out-of-pocket yearly limit, Medicare Supplement Plan L pays for 100% of covered services for the rest of the year.

Keep reading to learn about the benefits, downsides, costs, and coverage for Supplement Plan L.

2025 out-of-pocket limits by plan

With Original Medicare (Part A hospital insurance and Part B medical insurance), there’s no cap on your annual healthcare costs. Limiting the money spent on healthcare is one reason people purchase a Medicare supplement plan (Medigap).

Choosing Medicare Supplement Plan L can help you plan better for your medical expenses because this supplement plan has an out-of-pocket limit. The limit means you can know the maximum you may have to spend in any given year for covered medical conditions.

An out-of-pocket limit may be especially beneficial if you have high costs for ongoing medical care due to a chronic health condition or want to feel prepared if faced with an unexpected and expensive medical situation.

Some downsides exist to consider when choosing whether to add a Medigap plan to your Medicare coverage:

  • Costs: Medigap policies come with higher premium costs, which you must pay in addition to your standard Medicare premiums.
  • Drug coverage: Medigap plans don’t cover prescription drugs.
  • No additional benefits: Medigap plans don’t offer additional benefits like dental, vision, or hearing coverage.
  • Enrollment restrictions: You must enroll in a Medigap plan during the open enrollment period to avoid being subject to health-related questions. If you miss the window, you may not get coverage due to health conditions or need to pay higher premiums.
  • Variations across states: Although the federal level standardized coverage for Medigap plans, pricing and availability vary from state to state.

Most Medigap policies cover coinsurance after you pay the deductible. Some also pay the deductible. Medicare Supplement Plan L coverage includes:

BenefitPercentage covered
Part A coinsurance and hospital costs up to an additional 365 days after you use up Medicare benefits100%
Part A deductible75%
Part A hospice care coinsurance or copayment75%
blood75% (first 3 pints)
95% (after first 3 pints and Part B deductible)
skilled nursing facility care coinsurance75%
Part B deductiblenot covered
Part B excess chargenot covered
foreign travel exchangenot covered
out-of-pocket limit$3,610 in 2025, with 100% of covered services for the rest of the year paid after you meet your yearly Part B deductible and your out-of-pocket yearly limit

Private companies can sell supplemental insurance to Medicare recipients to help cover those extra costs because Original Medicare doesn’t cover all healthcare costs.

Medigap policies follow standardized federal and state laws. However, standardization in Massachusetts, Minnesota, and Wisconsin is different. In most states, Medicare supplemental insurance plans are identifiable by the same letter, so Medicare Supplement Plan L cost and coverage are the same from state to state.

Eligibility for Medigap requires that you:

  • have Original Medicare parts A and B
  • hold your own policy (your spouse requires their own separate policy)
  • pay monthly premiums and your Medicare premiums

You can’t have Medicare supplemental insurance (Medigap) and a Medicare Advantage plan.

Medicare Supplement Plan L is a Medigap policy that helps cover healthcare costs that Original Medicare doesn’t cover. One feature is setting a yearly limit on out-of-pocket spending.

Review the costs and benefits for your individual health and financial needs when considering adding a Medigap policy to your Original Medicare plan.

You have a choice of 10 Medigap plans, each offering different levels of coverage and options. Medicare Supplement Plan L may be a good option for you if a limit on out-of-pocket spending is important to you.