What is Medicare Supplement Plan K?

Medicare Supplement Plan K is one of 10 standardized Medigap plans designed to provide beneficiaries some assistance with the Original Medicare (Part A&B) out-of-pocket expenses. Medicare Supplement Plan K 2021 is an affordable option for those looking to bridge the gap in their Medicare coverage. However, it comes with quite basic coverage, which we will discuss in detail below.

Medigap Plan K pays a percentage of the majority of the covered benefits with the exception of Medicare Part A coinsurance and hospital costs for an additional year (after depleting what Original Medicare covers). After which, the policy comes into play and covers this benefit in full. Supplemental Medicare Plan K costs less in comparison with other Medigap plans, and that is due to the fact that it leaves policyholders at risk of paying more out-of-pocket expenses; which can be avoided by enrolling into a more comprehensive plan.

Medicare Supplement Plan K Eligibility:
Before getting into Medicare Supplement Plan K benefits, the general eligibility requirements of Medicare Supplement Insurance Plan K are as follows:

– You are at least 65 years of age, a U.S. citizen or a legal resident for at least five consecutive years
– You are currently receiving retirement benefits
OR
– You are disabled and therefore receiving disability benefits
– You have End-Stage Renal Disease (ESRD)
– You have Lou Gehrig’s Disease (ALS)

Medicare Supplement Plan K Coverage
Cover 50% of 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 (3) 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 coverage options do not cover:

– Part B excess charges
– Medicare Part B deductible
(Part B excess charge occurs when a provider would like to charge more for their services, which could be up to an additional 15% of the original bill)

How much does Medicare Supplement Plan K cost?

Medicare Supplement Plan K rates differ from one insurance carrier to another, since these Medigap policies are sold by private insurance companies that decide how much they would like to be charged. However, Medigap policies have to offer the same base benefits no matter where they’re sold. For example, Plan K sold in Texas offers the same exact benefits as Plan K sold in Georgia. Plan K is associated with lower monthly premiums in comparison with other Medigap policies, however, it is important to note that the premium isn’t the only fee a policyholder pays. Medigap Plan K covers only 50% of the majority of its benefits, which will leave you responsible for paying a portion of the expenses on any of the benefits mentioned above. This is why it is important to think about your needs and consider a more comprehensive Medigap plan if you think the Medicare Supplement Plan K copay agreement will make you end up paying more in out-of-pocket expenses.

*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.