What Is Medicare Supplement Plan K? How Much Does It Cost?
Medicare Supplement plans, including Plan K, help you pay for medical expenses that Original Medicare doesn't fully cover. Medicare Supplement Plan K is one of the cheapest options, but it doesn't give you as much coverage as other Medigap plans. If you don't need much medical care but still want a safety net in case of a major illness or injury, Plan K could be a good choice.
How much does Medicare Plan K cost?
Medicare Plan K costs an average of $77 per month in 2024.
Plan K is cheaper than most other Medigap policies. Unless you want a high-deductible plan version, Plan K is the cheapest Medigap option available. This low monthly rate makes Plan K a good option for those on a budget.
But the low price comes with a tradeoff. Plan K's coverage is not as extensive as most other Medigap plans. That's why comparing Medigap costs and coverage can help you find the right balance between monthly premiums and medical expenses.
Monthly rates for Plan K vs. other Medigap plans
Plan | Monthly rate |
|---|---|
| High-deductible G | $48 |
| High-deductible F | $52 |
| Plan K | $77 |
| Plan N | $111 |
| Plan L | $112 |
Rates are averages for a 65-year-old woman who does not smoke.
What is Medicare Plan K?
Medicare Plan K is one of the 10 Medicare Supplement plans that fill in coverage gaps left by Original Medicare. Usually with Medicare Parts A and B, you will have to pay some of your medical bills yourself. Medigap plans can help pay for these costs.
Medicare Plan K only covers half the cost for many services until you meet the out-of-pocket limit, which is $7,060 in 2024. After you hit that amount, the plan pays all of the covered medical costs for the rest of the calendar year. It is important to note that Medicare excess charges do not count toward the yearly out-of-pocket limit.
Plan K doesn't cover the Medicare Part B deductible, which is $240 each year in 2024. But that $240 does count toward your out-of-pocket maximum, which is when Plan K starts paying for all of your covered medical bills. Medicare Plan K also does not cover foreign travel emergencies or Medicare excess charges.
Example of how Plan K works:
Plan K covers half of your Part B coinsurance, which is the amount of your doctor bills that you have to pay yourself. Part B usually covers about 80% of your medical costs, so you have to pay 20%.
Imagine you have a $1,000 doctor bill. If you just have Original Medicare, you would pay $200 of this bill out of pocket. And that's assuming you've already met the $240 Part B deductible.
Now imagine you have Plan K on top of Original Medicare. Since Plan K covers half of your Part B coinsurance, it would cover half of that $200 bill. That means you would only have to pay $100 of your total $1,000 medical bill. And if you'd already paid at least $7,060 in medical costs earlier in the year, Plan K would cover all of the $200 coinsurance.
What does Plan K cover?
Plan K typically covers half of certain medical costs.
This includes half of the costs for Part B coinsurance, which is usually around 20% of your doctor bills. It also covers half of the coinsurance for hospice and skilled nursing care. Plan K also covers half of your Part A deductible, which is $1,632 in 2024, and half of the cost for three pints of blood, if you need it due to an injury or medical procedure.
The only Medicare cost that Plan K covers fully is your Part A coinsurance, which is the daily amount you pay if you are in the hospital for more than 60 days.
Medicare Plan K benefits | Coverage |
|---|---|
| Part A coinsurance | |
| Part B coinsurance | 50% |
| Blood (first 3 pints) | 50% |
| Part A hospice care | 50% |
| Skilled nursing home | 50% |
| Part A deductible | 50% |
| Part B deductible | |
| Part B excess charges | |
| Foreign travel emergency |
Medicare Supplement Plan K, along with Plan L, puts a cap on how much you pay for covered services. Once you hit $7,060 in 2024, Plan K covers all of your Medicare-approved care.
What doesn't Plan K cover?
Plan K does not cover the Medicare Part B deductible, which is currently $240 each year. It also doesn't cover any Part B excess charges. You also won't have coverage for medical care you need while traveling.
Medicare Plan K, like other Medigap plans, does not cover eye exams, vision care, dental care, hearing aids or long-term care.
Does Medicare supplement Plan K cover SilverSneakers?
Plan K might cover SilverSneakers, which encourages older adults to be physically active.
Plan K itself doesn't offer any SilverSneakers coverage, but some companies offer the program as an extra perk. If you choose a company that has this benefit, you will probably get a free membership at a gym in the SilverSneakers network. Not all companies offer SilverSneakers with Medigap plans, so if you know you want a membership, be sure to choose a company that offers one.
When and where to buy Medigap Plan K
The best time to buy Plan K, or any Medigap plan, is when you first become eligible.
Signing up when you first become eligible usually means you will get the best rates. Insurance companies can't use health issues to charge higher prices during this time, and they also can't refuse to sell you a policy. You are eligible to buy a Medicare Supplement plan the month that your Medicare Part B is active.
If you don't sign up when you are first able to, you might still be able to buy a plan. However, you may have fewer options and your rates might be higher.
Unlike Medicare Parts A and B, which come from the federal government, Plan K and other Medigap plans are sold by private health insurance companies. You can find out which companies sell Plan K in your area by searching on Medicare.gov.
Are Medicare Plan K premiums tax-deductible?
Yes, Medigap Plan K premiums are considered health expenses, so in certain situations they are tax-deductible on a federal tax return. If you spend more than 7.5% of your adjusted gross income on eligible medical expenses and you itemize your tax return, you may be able to deduct Medigap Plan K premiums.
Plan K vs. Plan L
Medicare Plan K is sometimes compared to Medicare Plan L, and the two plans are similar. Both plans, for example, pay a percentage of certain services, and both have annual out-of-pocket limits. Like Plan K, Plan L does not cover the Medicare Part B deductible, foreign travel emergencies or Medicare excess charges.
The major differences between Plan K and Plan L are costs and how much the plans cover.
Plan feature | Plan K | Plan L |
|---|---|---|
| Monthly rate | $77 | $112 |
| Part A coinsurance | ||
| Part B coinsurance | 50% | 75% |
| Blood (first 3 pints) | 50% | 75% |
| Part A hospice care | 50% | 75% |
| Skilled nursing home | 50% | 75% |
| Part A deductible | 50% | 75% |
| Part B deductible | ||
| Part B excess charges | ||
| Foreign travel emergency |
Frequently asked questions
Is Medicare Plan K good?
Plan K can be a good choice if you don't need a lot of medical care but still want extra coverage for major illnesses or injuries. Even though Plan K only pays for half your share of medical costs in many scenarios, it does pay more after you hit your $7,060 out-of-pocket limit. That amount might seem high, but you could easily reach it if you became severely ill or hurt.
What is the Medigap Plan K out-of-pocket limit?
In 2024, the out-of-pocket maximum for Plan K is $7,060. Once you have paid $7,060 of your medical care, Plan K starts to pay for all of the bills left over from any Medicare-approved care that you get.
Does Plan K cover the Medicare deductible?
Plan K covers half of your $1,632 Part A deductible, which you pay each time you are hospitalized. Plan K does not cover your Part B deductible, which is $240 per year.
Methodology
2024 Medicare Supplement rates come from actuarial data for private insurance companies. Average rates are for a 65-year-old nonsmoking woman. Rates represent the cost for a plan when an enrollee first becomes eligible and don't have to answer medical questions. Rates do not include a household discount. Select plans and plans from states that have their own Medigap systems are excluded from average costs.
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