What is the cost-sharing structure associated with Medigap Plans K and L?

Medigap Plans K and L are designed with a unique cost-sharing structure that emphasizes lower monthly premiums in return for higher out-of-pocket costs. This means that beneficiaries who select these plans will pay less each month in premiums but will face higher costs when it comes to deductibles, coinsurance, and copayments for services.

Specifically, Plan K covers 50% of certain costs, whereas Plan L covers 75%, indicating that beneficiaries are responsible for the remaining percentage of costs. This design attracts individuals who are healthier or who may not anticipate needing frequent medical care, as they are willing to accept increased out-of-pocket responsibilities in favor of lower monthly expenses.

Therefore, the essence of Plans K and L lies in this cost-sharing dynamic, which balances the trade-off between premium costs and expenses incurred during service utilization.