Medicare Supplement Plan K

This time we will talk about the Medicare Supplement Plan K. This is one of four newer plans that were introduced in 2010 with the passage of the Medicare Modernization Act.

Plan K is not widely offered and only three companies in Texas sell Plan K. However, in specific circumstances, Plan K can be a smart choice.

Along with plans L, M and N, Plan K is one of the plans with more cost sharing than other plans. Plan K is not very popular, but it can be useful in certain situations.

If you have seen one of our previous articles, then you already know that two of the most important gaps in Original Medicare coverage are Part A and Part B insurance. This plan covers 100% for Part A insurance and 50% for Part B insurance. So, the good news is that if you end up in an extended hospital stay, the Part A hospital insurance will be covered in full, but the Part B medical insurance will be covered at 50%, leaving you with some out-of-pocket expenses.

When visiting physicians and receiving covered Part B services, such as inpatient, outpatient, durable medical equipment and preventive services, you will not have to cover the entire 20% insurance gap, as Plan K will essentially split this cost with you.

The next four major gaps in Original Medicare coverage are the cost of pints of blood, the hospice copayment, the copayment for skilled nursing facility care, and the Part A deductible, where Plan K will also cover the 50% of these four.

Similar to your Part B insurance, the Medicare Supplement K plan will essentially split these four costs with you as well. This leaves us with three more gaps in Original Medicare that plan K does not cover such as the Part B deductible, any excess Part B charges, and foreign travel emergencies. All of these costs will be out-of-pocket expenses.

Finally, if you have no plans to travel out of the country, you won't have to worry about costs associated with emergency medical care while abroad. These are the basic benefits of Plan K and as you can probably tell, the coverage is not as robust as many of the plans we have already discussed. But it's also important to note that Plan K also includes a maximum out-of-pocket limit of $5,880 annually. This does not include the Part B deductible. However, with plan K, after you meet this annual out-of-pocket limit and your annual Part B deductible, plan K will cover 100% of covered services for the rest of the year.

So it is clear that Plan K does not cover as many gaps in Original Medicare as other Medicare supplement plans. It has a much lower premium than the other plans, which can make it a sensible choice, especially if you are certain that your use of the plan is likely to be low or infrequent.

It may also be a sensible alternative to a Medicare plan, considering that while the costs will be similar, you will gain the freedom of a much broader group of providers, whereas a Medicare Advantage plan requires you to use a more limited network of providers.

You certainly have food for thought when considering your options for the right Medicare supplement plan for you to meet your needs.

If you found this article informative, please feel free to share it with someone who could benefit from this information and of course, our services. If you have any questions about Plan K or the other Medicare Supplement plans, please call us or visit our web page.

Our local number is 512-520-5957 or you can call us on our toll free number which is 855-GO-AVILA. We are here to serve you.