Budget Friendly Medigap Strategies: Plan L vs N

Overview

Finding the right Medicare Supplement plan often comes down to balancing your budget with the coverage you actually need. For many beneficiaries, two of the most affordable options are Medigap Plan L and Medigap Plan N.

Both plans reduce your exposure to Medicare’s gaps, but they work differently: Plan L relies on cost-sharing with an annual cap, while Plan N keeps premiums moderate with small copays. Understanding these differences is key to making a confident, budget-friendly choice.

What Is Medigap?

Medigap (Medicare Supplement Insurance) helps cover costs that Original Medicare (Parts A and B) leaves behind, such as coinsurance, copayments, and deductibles. These policies are standardized across most states, which means a Plan L in one state provides the same benefits as a Plan L in another.

Enrollment timing is important—if you miss your guaranteed-issue window, you may face higher premiums or medical underwriting. Learn more in our guide to the Medicare Supplement Special Enrollment Period.

Medicare Supplement Plans Comparison Chart

Key

• ✓ = Plan covers 100% of this benefit

• X = Plan does not cover this benefit

• % = Plan covers that percentage of the benefit

• N/A = Not applicable

Notes:

• *Plans F and G also offer a high-deductible option in some states. You must pay Medicare-covered costs up to $2,870 in 2025 before coverage begins.

• *Plans C and F are not available to people who became eligible for Medicare on or after January 1, 2020.

• For Plans K and L: After meeting your yearly out-of-pocket limit and Part B deductible, the plan pays 100% of covered services for the rest of the year.

• *Plan N pays 100% of Part B coinsurance, except for up to $20 copay for office visits and up to $50 copay for ER visits (if not admitted).

Medicare Supplement Plan L: Coverage and Costs

Medicare Supplement Plan L is designed for people who want lower monthly premiums in exchange for paying a portion of their healthcare costs.

What Does Plan L Cover?

• 75% of most Medicare-covered expenses such as Part B coinsurance, skilled nursing facility coinsurance, and hospice care.

• 100% coverage for preventive services and the first three pints of blood.

• Annual out-of-pocket limit: Once you reach the limit (set by Medicare each year), Plan L covers 100% of approved costs for the rest of the year.

• According to the official Medicare Medigap benefits chart, Plan L pays 75% of most Medicare-covered services until you hit the annual out-of-pocket limit.

➡️ For 2025, the out-of-pocket maximum is $3,610.

Best fit: Beneficiaries who want the lowest monthly premium and are comfortable with cost-sharing up to a capped amount.

Medicare Supplement Plan N: Coverage and Costs

Medigap Plan N has gained popularity for being one of the most budget-friendly Medigap plans that still provides robust coverage.

What Does Plan N Cover?

• 100% of Part A coinsurance and hospital costs.

• 100% of Part B coinsurance, except:

  • Up to $20 copay for some doctor visits.

  • Up to $50 copay for emergency room visits (if not admitted).

• Coverage for skilled nursing, hospice care, and foreign travel emergencies.

Analysis from KFF Medigap enrollment and premium data shows that Plan N has become more common among beneficiaries seeking cost-efficient yet comprehensive coverage.

Best fit: Retirees who want predictable copays and broader coverage than Plan L, without the higher premiums of more comprehensive plans like Plan G.

Plan L vs Plan N: Side-by-Side Comparison

For a broader overview of all standardized options, see our guide to comparing Medicare Supplement insurance plans.

Which Plan Is More Budget-Friendly?

The right choice depends on your definition of “budget-friendly”:

• Choose Plan L if you want the lowest monthly premium and don’t mind paying 25% of costs until you reach the yearly cap.

• Choose Plan N if you prefer predictable copays and more complete coverage, even with a slightly higher monthly premium.

For example:

• If you’re generally healthy and rarely need medical care, Plan L may save you more overall.

• If you see specialists frequently and want to minimize surprise bills, Plan N might be the smarter option.

Still deciding? You can also compare Medicare Advantage vs. Medigap to see what’s right for you.

FAQs About Medigap Plan L and Plan N

1. What does Medicare Supplement Plan N cover that Plan L doesn’t?
Plan N covers 100% of Medicare Part A and B coinsurance (with small copays), while Plan L only covers 75%.

2. What does Medicare Supplement Plan L offer that Plan N doesn’t?
Plan L includes an annual out-of-pocket spending cap—a rare benefit among Medigap plans.

3. Are these the most affordable Medicare Supplement plans?
Yes, Plan L and Plan N are consistently among the most affordable Medicare Supplement plans, though premiums vary by state and insurer.

Bottom Line

Choosing between Medigap Plan L and Plan N comes down to how you want to manage your healthcare budget: lower monthly premiums with shared costs, or slightly higher premiums with predictable copays. Both can be smart strategies for Medicare beneficiaries who want to control out-of-pocket expenses.

If you’re ready to compare your personalized options:

• Review the full list of Medicare Supplement plans.

• Or call 877-388-1028 (TTY 711) to connect with a licensed insurance agent who can guide you through enrollment.