When Do Med Supp Plans K, L, M, & N Make Sense?

When your client wants a Medicare Supplement, do you tend to place them in Plan G? While it’s true this Med Supp is the most common choice for newly eligible Medicare enrollees and covers the most out-of-pocket costs, never overlook Plans K, L, M, and N.

Read on for a closer look at these plans, how they work, and profiles of clients for whom they’d be a great fit.

Medicare Supplement Plan N Review

Why’d we start with Med Supp Plan N? Because it’s become an increasingly popular choice among shoppers. In fact, it’s the third-most picked option.

Enrollees pay premiums, copays (e.g., $20 for a doctor visit, $50 for ER visits that don’t lead to inpatient admission), and the Part B deductible ($240 in 2024). There’s no other deductible beyond the Part B deductible.

In exchange, Plan N coverage pays for 80% of foreign travel emergency costs and 100% of each of its Medicare Supplement benefits related to Medicare Part A, Part B coinsurance/copayment, pints of blood, and skilled nursing facility care.

Premium-wise, Plan N is less expensive than Plan G. However, unlike Plans C, F, and G, it doesn’t cover Medicare Part B excess charges. With its small copays and lower monthly premium, however, Plan N strikes a nice balance between good coverage and affordability.

Plan N is ideal for clients who:

• Want similar coverage to Plan G but a lower premium
• Have a chronic health condition that might result in a hospital stay
• Don’t visit the doctor often or are OK paying small copays
• Might need extended stays at skilled nursing facilities
• Travel out of the country
• Live in states that don’t allow excess charges (CT, MA, MN, NY, OH, PA, RI, and VT)
  • In these states, individuals’ out-of-pocket costs typically just include the Part B deductible, plus any copays
  • The only difference between Plans F and N in these states is that Plan F covers the Part B deductible, while Plan N does not

Medicare Supplement Plan K Review

A good starting point for a healthy client, Med Supp Plan K covers 100 percent of the Part A coinsurance and hospital costs. Additionally, it pays for 50 percent of each of the remaining Medicare Supplement benefits related to Medicare Part A, Part B coinsurance/copayment, pints of blood, and skilled nursing facility care. It does not cover the Part B deductible, Part B excess charges, or foreign travel emergency costs.

Plan K coverage pays 100 percent of enrollees’ Medicare-covered costs for the rest of the policy year after they meet the annual Part B deductible and the plan’s annual maximum out-of-pocket limit of $7,060 in 2024 ($7,220 in 2025).

Plan K is ideal for clients who:

• Are aging into Medicare and generally healthy
• Are accustomed to having employer coverage
• Want low premiums
• Have financial resources to cover out-of-pocket expenses
• Don’t have chronic health conditions that might result in a hospital stay
• Live in states that don’t allow excess charges

Medicare Supplement Plan L Review

Med Supp Plan L is similar to Plan K but offers a little more protection.

Like Plan K, Plan L pays 100 percent of the Part A coinsurance and hospital costs and does not cover the Part B deductible, Part B excess charges, or foreign travel emergency costs.

Unlike Plan K, Plan L pays 75 percent of each of the remaining Medicare Supplement benefits related to Medicare Part A, Part B coinsurance/copayment, pints of blood, and skilled nursing facility care.

Once enrollees meet the annual Part B deductible and the plan’s annual out-of-pocket maximum of $3,530 ($3,610 in 2025), Plan L pays 100 percent of their covered costs for the rest of the policy year.

Plan L is ideal for clients who:

• Have only minor health problems
• Are aging into Medicare and generally healthy
• Are accustomed to having employer coverage
• Want lower premiums
• Have financial resources to cover out-of-pocket expenses
• Don’t have chronic health conditions that might result in a hospital stay
• Live in states that don’t allow excess charges

Medicare Supplement Plan M Review

Introduced in 2010, Med Supp Plan M was created to reduce the national budget deficit and eliminate wasteful spending caused by frequent doctor visits.

Plan M coverage pays 100 percent of the Part A coinsurance, hospital costs, and hospice care coinsurance/copayment; Part B coinsurance or copayment; blood (first three pints); and skilled nursing facility care coinsurance. In addition, it pays 50 percent of the Part A deductible and 80 percent of foreign travel emergency costs.

Like the three plans above, Plan M does not cover the Part B deductible or excess charges.

Plan M is ideal for clients who:

• Have financial resources to pay 50% of their hospital deductible
• Want lower premiums
• Don’t have chronic health conditions that might result in a hospital stay
• Might need extended stays at skilled nursing facilities
• Travel out of the country
• Live in states that don’t allow excess charges

Final Thoughts

Remember, your clients trust you to help them enroll in the right plan(s). If you sell a higher-premium, benefit-rich Med Supp to a client that may not need all that coverage, another agent might come along and put them in a more fitting, lower-premium plan.

Don’t forget about the importance of underwriting when it comes to Med Supps. If your client ever wants to switch plan letters or switch from Medicare Advantage back to Original Medicare with a Med Supp, they may have to pass underwriting. Read our free guide and learn how to help your clients navigate this process.

Be sure to explore all your clients’ plan letter options and thoroughly compare rates in your area. You’re the knowledgeable professional. Continue to grow your business by showing that to those whom you advise.

Interested in finding out which Med Supps are the most competitive in your local market? Contact your sales specialist or request a portfolio review to get started.

Editor’s Note: This post was originally published in April 2017 and has been updated to reflect current statistics.