Healthcare can get expensive quickly due to an unforeseen medical emergency or even just routine appointments and prescriptions that need to be filled. Because of this, it is critical to have the proper health insurance, and Medicare provides a number of different options so that you can pick a plan that works best for you and your needs. With Original Medicare insurance, it can get to be expensive with the deductible, copayment, and coinsurance costs. A Medigap plan, also known as Medicare Supplement insurance, can help with these costs, and Medicare Supplement K is a good option that can give many people peace of mind in case of a medical emergency or unexpected medical costs.

Many Medicare recipients choose to get their benefits insurance plan through Original Medicare, which includes Part A and Part B. Part A helps cover the cost of  on procedures, tests, and care when you are formally admitted into a hospital or skilled nursing facility. If you ever have to be admitted to the hospital, require an overnight stay following a surgical procedure, or need to utilize hospice care or a skilled nursing facility,  Medicare Part A will apply.

Medicare Part B is responsible for covering outpatient tests, procedures, medical equipment, and preventive care required to keep you healthy. Part B expenses can include the need for an ambulance service, various tests such as x-rays or MRIs to diagnose a medical issue, or if you need research to be done regarding a health issue like a sleep study.

Part A is usually premium-free based on taxes you paid while working. For Part B, you will likely be required to pay a separate monthly premium payment, which is dependent on your income and can be up to $491.60 per month. In addition, you will also be required to pay out of pocket up to your deductible, which is $198 in 2020. Then, once your deductible is reached, you will need to pay 20 percent of the Medicare-approved amount for services covered by Part B. These costs add up, especially if you require healthcare regularly.

Medicare Supplement Plan K May Help Lower These Costs

Medicare Supplement Plan K is a Medigap plan that helps individuals pay some of the out-of-pocket costs. This plan has a cap on the total amount you can spend out of pocket each year. In 2019, this cap was set at $5,560. Not many Medigap plans come with a spending cap, making this plan a unique option.

Once your out of pocket costs exceed this dollar amount, Medicare Supplement Plan K will take over and cover any additional costs for the rest of the calendar year. One of the biggest benefits of Plan K is that there is no cap on the coverage offered, meaning that there will never be any other surprise costs after you hit your annual limit.

In addition to covering everything over the cap, Plan K also pays for 50 percent of various costs and expenses, including your Part A deductible, Part A copayment for hospice care, Part B copayments, skilled nursing facility coinsurance, and the first three pints of blood required in a medical emergency. However, the Part B deductible is not covered by Plan K.

Compared to other Medicare Supplement plans, Plan K does require higher out-of-pocket costs upfront. While the coverage is highly beneficial after the annual cap has been met, you will be responsible for more costs initially, which is something you should keep in mind when selecting a plan. Additionally, this plan is not available in all states, so you should be sure to check if it is available in your current location.

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