Medicare Supplement Plan A

By: Edward Neeman
Published: Thursday, July 26 2018
Last Updated: 4 years ago

Medicare is government subsidized universal health insurance that covers all citizens who've paid into it once they turn 65. Although Medicare has reduced concerns about access to medical care and enabled seniors to live with dignity, it doesn't cover everything. That's where supplemental plans like Medigap Plan A come in.

There are 10 Medicare supplemental plans altogether, and each is designed to fill in the gaps of your Medicare health care. A Medicare insurance specialist can help you decide which plans are best for your situation, but here are some facts about Medicare Supplement Plan A.

What Is Medicare Plan A?

Medicare Supplemental Plan A should not be mistaken for Medicare Part A, which covers portions of the cost of hospitalization, hospice care, skilled nursing facility (SNF) care, and some home health services. Medigap Plan A is designed to minimize out-of-pocket expenses like copays and coinsurance from Medicare Parts A and B. Health insurance companies that offer Medigap insurance plans must provide, at minimum, Medicare Plan A coverage and its full benefits.

What Medicare Supplemental Plan A Covers?

Because Medicare Supplemental Plan A provides the fewest individual benefits out of all Medigap insurance plans, it might be called a basic or budget plan. Medicare Supplement Plan A helps cover the cost of:

  • Medicare Part A coinsurance payments for an additional 365 days after your original Medicare lifetime cap is reached
  • Medicare Part B copayments or coinsurance costs
  • The first three pints of blood if you need a transplant during a medical procedure
  • Medicare Part A hospice care coinsurance or copayments

Please note that Medigap Plan A only pays coinsurance or copays after you've met your deductible.

What Doesn’t Medicare Plan A Cover?

Medicare Supplemental Plan A is meant to ease the burden of out-of-pocket hospitalization and skilled nursing care expenses for those living on a fixed income. However, Medicare Plan A doesn't cover everything, and it only covers you. Your spouse will have to purchase their own Medigap plan. Exclusions to Medicare Plan A supplemental insurance plans include:

  • Deductibles for Medicare Part A and Part B
  • SNF care coinsurance payments
  • Excess charges for Medicare Part B
  • Foreign travel emergency coverage up to the plan limits

Medicare Supplement Plan A Cost

With the exception of the three states that are standardized on a different basis, all Medicare Plan A medigap insurance coverage offers the same benefits. If a company offer Medicare Plan A, they must also offer Plan C and Plan F. The only variable from state to state is the cost of your premiums. This makes it much easier to compare the price of Medicare Supplement Plan A packages from provider to provider.

The premiums that you pay for your Medicare Plan A policy are paid to a private insurance company in addition to any cost you owe to Medicare for original Part A and B coverage. Because the cost of Medicare is tightly regulated by the government, you can be sure that any price you're quoted by us will be accurate and fair. Browse our website to see how different Medicare Plan A coverage providers stack up against your budget.

Who Should Consider Medicare Plan A?

All supplemental Medicare Plan A coverage is standardized by the U.S. government to provide a consistent level of care for seniors regardless of location. However, if you live in Massachusetts, Minnesota, and Wisconsin, you'll find that each of those states offers their own unique Medigap Plan A coverage standards.

Seniors who would benefit from adding Medicare Supplement Plan A to their insurance coverage are those who are in relatively good health, who don't have a secondary insurance policy, and need basic help to cover the cost of coverage. You should explore the benefits of adding supplemental coverage to your original Medicare package before you reach retirement age. Be aware that if you have any of the following insurance, it isn't medigap coverage:

  • Medicare prescription drug plans
  • Medicaid
  • Employer provided plans, including Federal Employees Health Benefits Program (FEHBP)
  • Veteran's benefits
  • Indian Health Service, Tribal, and Urban Indian Health plans
  • Long-term care insurance In order to qualify for a Medigap Plan A policy, you must have Medicare Part A and B.

Seniors who have a Medicare Medical Savings Account (MSA) Plan are ineligible to purchase Medicare Supplement Plan A through a private insurer. You're also ineligible to purchase Medigap insurance if you have a Medicare Advantage Plan. You can drop one plan and purchase the other, according to your preference.