Cost-sharing Medicare Supplement Insurance programs, unlike most Medigap plans that offer 100 percent coverage for some benefits, only provide partial coverage for those specific benefits. Medigap Plan K and Medigap Plan L are the two cost-sharing arrangements currently available.
Both cost-sharing arrangements are available. The advantages of Medigap programs are the same, but the cost-sharing varies. There is an average out-of-pocket limit in both plans. This cap is in place to avoid cost-sharing from spiraling out of control. When you reach this annual cost-sharing cap, the plan shifts and starts to cover 100 percent of all eligible benefits.
According to enrollment data from America's Health Insurance Programs, the two cost-sharing plans are among the least common Medigap alternatives (AHIP). They are, however, gaining in popularity.