CMS Sets 2027 Out-of-Pocket Limits for Medigap Plans K and L and the Annual Deductible for High-Deductible Options

CMS has released its annual announcements setting key cost thresholds for certain Medicare supplement plans effective January 1, 2027. These figures are published each fall before the open enrollment period so insurers and beneficiaries can plan their coverage decisions.

For Medigap Plans K and L, which require enrollees to pay a share of Medicare cost-sharing but cap annual out-of-pocket liability once a threshold is reached, the 2027 limits are 8,360 dollars for Plan K and 4,180 dollars for Plan L. Both represent increases of 4.5 percent over the 2026 figures of 8,000 dollars and 4,000 dollars. Once a beneficiary with Plan K or Plan L reaches the annual limit, the plan covers 100 percent of covered Medicare costs for the remainder of the calendar year.

For the high-deductible versions of Medigap Plans F, G, and J, the annual deductible that enrollees must satisfy before coverage begins rises to 3,050 dollars in 2027. CMS calculates this figure using a Consumer Price Index for all urban consumers adjustment, which reflected a 3.40 percent increase from 2025 to 2026, then rounds to the nearest 10 dollars.

These thresholds are not monthly premiums. Medigap premiums are set by individual insurers and vary by state, plan type, and applicant characteristics. Beneficiaries enrolled in these plans will see the updated thresholds in their 2027 Annual Notice of Change documents.