Medicare Supplement Insurance Plan K (Medigap) Coverage and Costs 2026-2027

What Medicare Supplement Plan K Covers in 2026-2027

Medicare Supplement Plan K covers a percentage of your costs rather than requiring you to pay the full amount upfront. However, it offers a major advantage: an annual out-of-pocket limit. Once you reach this limit, the plan pays 100% of your Medicare-approved costs for the rest of the calendar year.

The following benefits are covered by Plan K:

• Hospital Expenses: Pays 100% of your Part A coinsurance and hospital costs for up to 365 days after Original Medicare benefits are used up.

• Medical Expenses: Pays 50% of your Part B coinsurance or copayments. (Note: Preventive care services are covered at 100%.)

• Blood Transfusions: Pays 50% of the cost for the first three pints of blood.

• Hospice Care: Pays 50% of the Part A coinsurance or copayment for hospice care.

• Skilled Nursing: Pays 50% of the coinsurance for facility care.

• Part A Deductible: Pays 50% ($868 in 2026) of your Medicare Part A hospital deductible.

Who Should Consider Medicare Supplement Plan K

Plan K is often the best choice for the smart saver. If you are generally healthy and don’t visit the doctor often, you can save money every month on your premiums. These savings often add up to more than the 50% cost-sharing you would actually pay.

Advantages of Medicare Supplement K

• Lower Premiums: Usually has some of the lowest monthly costs of any Medigap plan.

• Financial Safety Net: Limits your total out-of-pocket medical spending to $8,000 in 2026.

Disadvantages of Medicare Supplement K

• Higher Out-of-Pocket Costs: You are responsible for 50% of most coinsurance and copayments until you hit the yearly limit.

• Unpredictable Short-Term Costs: Your monthly medical bills may vary depending on the level of care you need.

The 2026 Cost-Sharing Structure: What 50% Coverage Means

With Plan K, you and the insurance company split the bill for most Medicare services. For example, if Medicare covers a service but leaves you with a 20% coinsurance bill, Plan K pays half (10%), and you pay the other half (10%). This continues until your total spending reaches the annual limit.

2026 Plan K Out-of-Pocket Maximum: What happens after $8,000?

Once you spend $8,000 on covered services in 2026, the transition to 100% coverage is automatic. Your Plan K policy will pay all of your Medicare-approved cost-sharing for the rest of the year. This limit resets on January 1 each year. 

Does the Part B deductible count toward the $8,000 limit?

It’s important to note that the 2026 Part B deductible ($283) does not count toward the $8,000 limit. You must pay that deductible separately before Plan K begins its 50% cost-sharing.

When to Enroll in Medicare Supplement Plans

The best time to buy a Medigap policy is during your Medigap Open Enrollment Period. This 6-month period starts the first day of the month you are 65 or older and enrolled in Medicare Part B.

During this time, insurance companies must sell you a plan at the best available rate, regardless of any health problems you have. If you wait until later, you may have to answer health questions (medical underwriting), and there is no guarantee a company will sell you a policy.

Find the Right Medicare Supplement Plan For You With SelectQuote

At SelectQuote, we’ll take the time to learn about your specific needs to shop and compare Medicare Supplement Insurance plans that may be available in your area. The service is free and there’s no obligation to enroll.