Medicare supplemental insurance, or a Medigap, helps cover some of the healthcare costs that are often leftover from Medicare parts A and B.

Medicare Supplement Plan K is one of two Medicare supplement plans that offer a yearly out-of-pocket limit.

Keep reading to learn more about this plan, what it covers, and who might benefit from it.

Most Medigap policies cover medical coinsurance costs after you’ve paid a yearly deductible. Some also pay the deductible.

Medicare Supplement Plan K coverage includes:

  • 100% coverage of Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
  • 50% coverage of:
    • Part A deductible
    • Part A hospice care coinsurance or copayment
    • blood (first 3 pints)
    • skilled nursing facility care coinsurance
    • Part B coinsurance or copayments
  • Not included in coverage:
    • Part B deductible
    • Part B excess charges
    • foreign travel exchange

The out-of-pocket limit in 2021 is $6,220. After you meet your yearly Part B deductible and your out-of-pocket yearly limit, 100 percent of covered services for the rest of the year are paid by Medigap.

There’s no cap on your annual healthcare costs with original Medicare. People who purchase a Medigap plan typically do so to limit the amount of money spent on healthcare during the course of a year.

This can be important to people who:

  • have a chronic health condition with high costs for ongoing medical care
  • want to be prepared in the event of a highly expensive unexpected medical emergency

Do any other Medigap plans have a yearly out-of-pocket limit?

Medicare Supplement Plan K and Plan L are the two Medigap plans that include a yearly out-of-pocket limit.

  • Plan K out-of-pocket limit: $6,220 in 2021
  • Plan L out-of-pocket limit: $3,110 in 2021

For both plans, after you meet your yearly Part B deductible and your out-of-pocket yearly limit, 100 percent of covered services for the rest of the year are paid by your Medicare supplemental plan.

Sometimes referred to as Medicare supplemental insurance, a Medigap policy helps cover healthcare costs that original Medicare doesn’t cover. For a Medigap plan, you must:

  • have original Medicare, which is Medicare Part A (hospital insurance) and Medicare Part B (medical insurance)
  • have your own Medigap policy (only one person per policy)
  • pay a monthly premium in addition to your Medicare premiums

Medigap policies are sold by private insurance companies. These policies are standardized and follow federal and state laws.

In most states, they’re identified by the same letter, so Medicare Supplement Plan K will be the same across the country, except in the following states:

  • Massachusetts
  • Minnesota
  • Wisconsin

You can only buy a Medigap policy if you have original Medicare. Medigap and Medicare Advantage cannot be used together.

Medicare Supplement Plan K is a Medigap policy that helps cover healthcare costs leftover from original Medicare. It’s one of the two plans that offers a yearly out-of-pocket limit.

The yearly out-of-pocket limit may be beneficial if you:

  • have a chronic health condition with high costs for ongoing medical care
  • want to be prepared for potentially expensive unexpected medical emergencies

If you feel that a Medigap policy is the right decision for your healthcare needs, be sure to consider all your policy options. Visit Medicare.gov to compare Medigap policies to find one that’s right for you.