Medicare was a law enacted in 1965 to provide health insurance for people aged 65 or older. It has since been amended and supplemented with plans to support the initial act. These Supplemental plans are also known as Medigap plans.
Medigap Plan K is a solution for individuals to opt out of pricey premium which they may face with other Medicare Supplement plans. Medicare Supplemental Plan K has specifically only covered services at a discounted rate for approved services.
What Is Medicare Plan K?
Medicare Supplemental Plan K serves the purpose of paying all of Medicare Part A up to a year after Medicare benefits are drained. Medicare Supplement Plan K pays 50% of Medicare Part B copayment or coinsurance, the process of drawing blood for a medical procedure, the end of life care for Part A hospice care coinsurance or copayment, and skilled nursing facility care coinsurance.
There is an out-of-pocket limit which is addressed through Medigap Plan K. Medicare Supplement Plan K only covers Medicare-approved services at a rate of 50%.
What Medicare Supplemental Plan K Covers?
Medicare Supplemental plan K covers a wide array of services. A majority is 50% covered through the Medicare plan K coverage but the basis of the plan is to offer an affordable option with a lower premium. Coverage offers individuals the option to pay for partial coverage at a rate of 50%.
Medigap Plan K is a great option for individuals who plan on not needing a variety of costly services because they can avoid a more expensive premium. It is often standardized by most states so benefits remain generally consistent. It is important to remember that not all medical services are not approved through Medicare.
Medicare Plan K is an important Supplemental plan for beneficiaries who prefer the freedom to choose their plans. Medicare Plan K is a great choice for individuals who prefer low premiums with a risk of potentially higher out-of-pocket expenses.
What Doesn’t Medicare Plan K Cover?
Medicare Supplemental Plan K only covers individuals who are eligible for Medicare services. This plan covers people who decide to they want a lower premium and it provides people that option. Medicare plan does not cover individuals who express the option to use the foreign travel exchange benefit, which is covered in all other plans up to 80% except Medigap Plan L.
Medicare Plan K coverage does not include individuals who are not eligible for Medicare and is irrelevant for people who reach their out-of-pocket limit of $5,420 for the year 2018. Through Medicare Plan K, patients must pay out-of-pocket for both the Medicare Part B deductible and Part B charges, which aren’t covered.
Medicare Supplement Plan K Cost
For all other Medicare Supplemental plans except plan L, there are no out-of-pocket costs associated. However, with Medigap Plan K, there is an out-of-pocket expense limit of $5,240 for the year 2018.
Medicare Plan K was created to cover 50% of all traditional benefits of Medicare to offer an option to individuals who choose to have a lower premium. Once people have reached the out-of-pocket limit of $5,420 for the year of 2018, all of the costs following will be covered 100%.
Who Should Consider Medicare Plan K?
Medicare Plan K is excellent for individuals who deem themselves as relatively healthy with little to no extra needs due to old age. Medicare Plan K coverage still covers 50% of benefits so people who still require services still get them for a discounted price. Also, once they hit the limit of $5,420 for the year, they will have to pay no more out-of-pocket costs for the year.
Even in worst case scenarios, costs do not rise about $5,420. Medicare Supplement Plan K allows the freedom for individuals to choose their preferred premium rate with the knowledge of receiving services at a discounted rate of 50%.
