Medigap Plan K provides medicare gap coverage at a reduced level. This is a plan for someone who does not need complete Medigap coverage. Like all plans, Medigap Plan K provides a core of benefits plus some options to reduce premium costs to the buyer. You will have to look at your personal economics to see if this is a benefit you can use.
Medigap Plan K is identical to Medigap F, the most popular plan, except that it does two things. You must pay a deductible before the plan kicks in. For the year 2011, this deductible will be $4640. Once this is paid out, your coverage begins. The other difference is that you will then be covered for only 50% or half of the payments provided under Plan F. Under this plan, your premiums will be much lower than Medigap Plan F. Your coverage is also much lower.
This plan, once you have paid the deductible, pays Medicare Part A coinsurance costs plus 365 days after Part A coverage ends. This plan will also pay Part B copays. K will cover three pints of blood and payments at a Skilled Nursing Facility. It will also cover the basic deductibles for Medicare Part A and Part B. This is the core coverage of Medigap Plan K. Remember though, this plan will only pay half of these costs. Starting in the new year, all Medicare subscribers will have to obtain their drug coverage under Plan D, or not at all under Medicare. Because of this, Medigap policies no longer contain any drug benefits.
This plan is clearly for someone who has health coverage through an organization other than Medicare. It also provides some gap coverage for someone who cannot afford to pay for the higher Medigap policies. Medigap Plan K insurance does provide some relief from medical expenses not covered by Medicare.