Medicare Supplement Plan K is one of the most popular medical supplement insurance plans. Given that it limits your annual out-of-pocket costs, it is particularly attractive to those with chronic conditions.
If you are eligible for the Federal Medicare Program (Parts A & B, also referred to as Original Medicare), you can purchase a Medicare supplement insurance plan. With many plans to choose from (ten different plans, as of 2021), it can be challenging to know which plan to select and which private insurance company to buy from.
In this article, we will discuss what Medicare Supplement Insurance is at a general level, followed by a detailed review of the benefits of Medigap Plan K.
What Are Medicare Supplement Insurance Plans?
Medicare supplement plans are issued by private health insurance companies and help pay for costs not covered by Original Medicare (Part A and Part B). These include:
- Copayments and coinsurance
- Total out-of-pocket costs
Because they help fill in the gaps not covered by Medicare, supplemental plans are often called “Medigap” plans.
There are ten different types of Medigap policies (Plans A, B, C, D, F, G, J, K, L, M, and N). In some states, Plans F and G also have a high-deductible option, which combines health insurance coverage with a savings component through an HSA (health savings account).
Plans F & G provide prescription drug coverage; however, you can also purchase Part D prescription drug coverage on a standalone basis.
Medicare Supplement Insurance Plan K
Medicare Supplement Plan K covers services similar to other Medicare Supplement insurance policies, but instead of paying all your costs, the plan pays a percentage.
If you have a serious illness or injury, you have the protection of an out-of-pocket annual limit. Once you reach this “cap” on your out-of-pocket costs, the plan pays 100% of Medicare-approved costs for the rest of the year.
This plan is a good option if you prefer a lower premium but still want a fair amount of coverage for a wide variety of services.
Medicare Plan K Benefits
We will dive into these benefits at a deeper level in the tables below, but at a high level, Medicare Supplement Plan K coverage provides:
- 100% coverage for Part A hospitalization coinsurance plus coverage for 365 days after Medicare benefits end
- 50% hospice coverage for Part A coinsurance
- 50% of Medicare-eligible expenses for the first 3 pints of blood
- 50% Part B coinsurance, except for preventive care services, which are covered 100%
In addition to these basic benefits, Plan K also provides:
- 50% coverage for Skilled Nursing Facility coinsurance
- 50% coverage for your Medicare Part A deductibles
- $6,220 out-of-pocket annual limit for 2021 (this limit adjusts each year for inflation)
Medicare Plan K Cheat Sheet (Printable PDF)
If you’re looking for a quick reference to Medicare Supplement Plan K benefits, click here for a printable PDF cheat sheet.