What does Plan K in Medicare Supplement insurance cover?

Plan K in Medicare Supplement insurance is designed to cover a percentage of certain costs associated with Medicare services while also incorporating an out-of-pocket limit. This structure means that beneficiaries are responsible for a portion of the healthcare costs, allowing them to have a predictable maximum amount they would need to pay out of their own pockets each year. Once they reach that out-of-pocket maximum, the plan pays 100% of covered services for the rest of the plan year.

For individuals seeking to manage their healthcare expenses while still benefiting from Medicare, Plan K offers a balance of coverage and cost-sharing. The out-of-pocket limit feature is particularly valuable, as it can protect beneficiaries from excessive medical expenses in a given year.

In contrast, the other options do not accurately represent the nature of Plan K. It does not provide comprehensive coverage for all Medicare costs, nor is it focused on low-cost generic drugs or limited to covering only hospital expenses, which are aspects addressed by other plans in the Medicare Supplement insurance lineup.