AARP branded Medicare supplements are insured by United Healthcare. AARP membership is required to purchase a policy. AARP Medicare supplement Plan K is a lower cost alternative to some of the more popular Medigap options.
Medicare supplements are standardized insurance plans. They are designed to work with Medicare. They do not replace Medicare. Your share of Medicare covered expenses are paid according to the plan. There are 10 standardized plans available. The premium is higher for plans that include more comprehensive benefits.
AARP Medicare supplement K offers a plan model that keeps your premiums low while requiring you to take more responsibility for your share of Medicare covered expenses.
Medicare supplement Plan K benefits and limitations
Plan K has a lower premium than most other supplement plans. But you could have higher out-of-pocket costs. It all depends on your health and how often you need to take advantage of Medicare covered services. Below we’ll look at who could benefit most from this plan.
- Hospitalization and preventative care paid at 100% – Basic benefits paid at 50%
- 50% skilled nursing facility coinsurance
- 50% Part A deductible – total Part A deductible for 2017 is $1288
- Out-of-pocket limit of $5120 – paid at 100% after limit is reached
- 50% of basic/outpatient care is paid by you.
- Responsible for 50% skilled nursing facility coinsurance – Your share is $164.50 for days 61-90.
- You are responsible for 50% of the Part A deductible.
- You are responsible for the annual Part B deductible – Your share for 2017 is $183 (more for earners above $85,000).
- You are responsible for Part B excess charges.
- Foreign travel is not covered.
You will also be responsible for Part D coverage as no supplement plans include Part D.
Is Plan K right for you?
AARP Medicare supplement Plan K is not right for everyone. If you are healthy and rarely use your Medicare benefits Plan K may save you money. But if you do require services you should be aware that your out-of-pocket costs may be higher than Medicare supplement Plan F for instance.
The most likely expenses for the occasional user of Medicare services will be the Part B deductible and 50% of basic/outpatient services. As an example, if you require testing and or lab work that is not covered as preventative and you are not hospitalized you will be on the hook for 50% of your normal share of expenses.
If you travel outside the United States and would like the peace of mind that you are covered by Medicare this is not the plan for you. If you travel outside the US and you want a plan with a lower cost you may want to check out Medicare supplement Plan N.
As was mentioned above, there are 10 standardized plans. Insurance companies generally choose which plans they will offer in a given market. Its best to compare Medicare supplement plans to get the best rate. If you would like to compare plans from multiple companies visit the eHealth website. To get started choose Medicare supplements and enter your zip code.