Plan K of the 2019 Medicare Supplement plan provides basic healthcare coverage at a reasonable monthly premium to the customers. With the exception of the Medicare Part A coinsurance and hospital costs for a year, it covers 50% of the other expenses. The Plan K has a high out-of-pocket expense for the customers, thus it has a low monthly premium. Some of the key features and benefits of the Plan K of the Medigap are provided below:
Features of Plan K
The Plan K covers the unmet expenses of Original Medicare Part A and Part B. It provides basic health coverage at an affordable monthly premium. The Plan provides partial health coverage by providing 50% of many Original Medicare deductibles and copayments. The Plan K covers all the Medicare-approved Part A coinsurance and costs up to 365 days after the Medicare benefits are exhausted. It covers 50% of the total expenses towards- Medicare Part B coinsurance and copayments, the first three pints of blood for medical procedures, skilled nursing facility (SNF) coinsurance, and Medicare Part A deductible, and Medicare Part A hospice care coinsurance or copayment.
The Medicare Supplement Plan K and Plan L are the two plans which includes an annual out-of-pocket limit. Under the Plan K, the yearly out-of-pocket limit is $5,240 in the year 2018. This out-of-pocket limit includes the deductible for the Original Medicare Part B. Once the customers have reached their out-of-pocket limit for the year, then the Plan K will provide 100% coverage towards the Medicare-covered costs. It is important to note that the annual out-of-pocket limit for the Plan K is about twice the amount for the Plan L.
Is it Suitable for Customers?
Plan K is not a very popular plan among the customers. According to the year 2014 data, 16% of the Medigap insurers offered the Plan K and only 1% of the total Medigap policyholders purchased this plan. The yearly out-of-pocket expenses is useful if the customers want to be protected against high out-of-pocket costs due to chronic health conditions which require ongoing medical care or to meet any unexpected medical emergency. If the customers want a plan with lower annual out-of-pocket limit after which they will be covered by the plan benefits, then they can choose Plan L which has about half the out-of-pocket limit. If the customers have a high medical expenses and they would prefer higher coverage then they can opt for other Medicare Supplement plans providing more comprehensive coverage.