What is Medicare Supplement Plan K?
Medicare Supplement Plan K is one of 10 standardized Medigap plans designed to provide assistance with some Original Medicare expenses. If you are looking for a low-cost Medigap plan to assist you with these expenses, you may want to consider Medigap Plan K. Although the coverage it provides is quite basic compared to the other 9 plans, Medicare Supplement Plan K 2021 may be suitable for your needs.
Medicare Plan K pays a percentage of the majority of the benefits it covers; with the exception to Medicare Part A coinsurance and hospital costs for an additional 365 days after Original Medicare benefits are depleted. After which, the policy covers the benefit in full. Due to the fact that you are subject to paying higher out-of-pocket expenses, out of the 10 standardized Medigap policies, Plan K premiums are significantly less costly.
Medicare Plan K Eligibility
Before mentioning Medicare Supplement Plan K benefits, here are the general eligibility requirements:
– You are at least 65 years old, a U.S. citizen or legal resident for at least five consecutive years
– You are currently receiving retirement benefits.
– You are disabled and receiving disability benefits
– You have End-Stage Renal Disease (ESRD)
– You have Lou Gehrig’s Disease (ALS).
Medicare Supplement Plan K Coverage
Supplement Plan K covers 50% of the cost for the following benefits:
– Deductible for Medicare Part A
– Hospice care coinsurance or copayment for Medicare Part A
– Coinsurance for skilled nursing facility care
– Copayment or coinsurance for Medicare Part B
– The first three pints of blood received on a yearly basis
– Coinsurance hospital costs for Medicare Part A up to an extra 365 days after Medicare benefits have been depleted
On the other hand, Medicare Supplement Plan K does not cover:
– Part B excess charges
– Medicare Part B deductible
*For any covered service, there is a standard approved amount that Medicare will pay. There are doctors, however, that would like to charge more for their medical services. This is what is known as an excess charge, which could be an additional 15% of the original bill.
Medicare Supplement Plan K cost
Medigap premiums vary from one insurance carrier to another. However, the premium isn’t the only cost you should keep an eye on when choosing a Medigap policy. With Medicare Supplement Insurance Plan K coverage only paying for 50% of the majority of its benefits, you will be responsible for paying a portion of the expenses associated with the benefits mentioned above. With everyone having their own individual situation and lifestyle, your out-of-pocket projections are unique to you.
If you think your out-of-pocket expenses will be low, Medicare Supplement Plan K coverage options may be suitable for you, if, however, you find that your expenses will be higher than what you would prefer to pay out-of-pocket, then the Medicare Supplement Plan K copay arrangement may not benefit you much at all.
*An important note to take into account is the out-of-pocket limit. In contrast to all other Medigap coverage, Medicare Supplement Insurance Plan K includes an out-of-pocket yearly limit of $5,880 for the year 2020 on all Medicare-covered services. As soon as your spending has reached this limit, the policy will pay 100% of the covered services for the rest of the year. This is why it is important to not only compare Medicare supplement plan K rates (premiums) with those of other Medigap plans but other factors like copays, coinsurance, deductibles, etc…