Medicare Supplement Plan K is one of the two somewhat unique Medigap plans available. While there are eight traditional plans that fill very specific gaps in traditional Medicare Medigap plan K and L take a slightly different approach.
With most of your supplement plans you will fill a gap in Medicare coverage completely. For example plan A covers 100% of the Medicare Part A coinsurance but 0% of the the Medicare Part A deductible. Medicgap plan K takes a very different approach. Instead of covering all of a specific gap it will only cover 50% of most of the gaps and then give you an out of pocket limit where once you reach the limit Medicare supplement plan K will cover 100% from that point on. To get a real grasp of the concept we will use this example.
John Senior gets admitted to the hospital. The Medicare Part A deductible is $1,156 so John has to pay for half of that or $553. After recovering some he is dismissed from the hospital and then put on skilled nursing care until he completely recovers. He pays for half of the coinsurance until he has paid $4,640 total out of pocket (the $553 is included in that number). If he is still on skilled nursing care at that point Medigap Plan K will cover 100% of the costs.
This is very similar to a plan you might get with a private insurance company for your health insurance from and employer. The categories Medicare supplement plan K will cover at 50% are: Medicare Part B coinsurance, Medicare Part A deductible, first three pints of blood, skilled nursing care, and hospice care. Medigap plan K will cover all of the Medicare Part A coinsurance and covers none of the Medicare Part B deductible, excess charges over the Medicare approved amount that a doctor’s office may charge you, or any foreign travel emergency expenses. Like we said above, once you reach the out of pocket limit of $4,640 you will not have to pay any of the items that you were pay 50%, but you will have to pay for the three items that Medicare supplement Plan K does not cover.
So why would anyone choose Medigap plan K where you have all these possible out of pocket expenses? The answer is in the monthly premium. With a plan like this the insurance company takes on much less of the risk so they are able to offer much lower premiums. So if you are in a situation where you are healthy and have a sizeable nest egg to handle the $4,640 maximum then you can take advantage of the lower monthly premiums offered by Medicare supplement Plan K.
The only way to know whether Medigap plan K or one of the other Medicare supplement insurance plans is right for you is to get a set of custom quotes. We are happy to provide you with a set of quotes for Medicare supplement Plan K along with the other Medicare supplement insurance plans and answer any questions you may have. Just fill out the form on the side or bottom of this page. If you would like, you can learn more about Medicare supplement Plan M and the different Medicare supplement insurance plans HERE.