Medigap Plan A – Analysis and Information

What is Medicare Supplement Plan A?
Although complementary to Medicare Part A, Medigap Plan A 2021 is a separate policy sold by private insurance companies. Medicare Part A covers inpatient hospital care and makes 50% of what Medicare Parts A and B (also known as Original Medicare). Medigap was designed to help Medicare-holders pay for out-of-pocket expenses that are not fully covered by Part A.

 

Supplement Medicare Plan A is one of 10 standardized Medicare supplement (Medigap) plans. These plans offer uniform base benefits, regardless where they are sold (with the exception of Massachusetts, Minnesota, and Wisconsin) or which insurance carrier sells them. For example, Plan A sold by Insurance Carrier X in Texas offers the same benefits as Plan A sold by Insurance Carrier Y in Georgia. The key disparity between these Medigap policies is the premium. Some insurance companies prefer to charge more for extra services and benefits on top of their Medigap policies. However, base benefits must stay uniform across all companies. This is why the most suitable plan for your needs depends on the premium price paired with extra services offered by the insurance company you are purchasing your policy from.

 

Medigap Plan A Eligibility
Before getting further into the Medigap Plan A benefits, here are the general eligibility requirements for Medicare Supplement Plan A

– You are at least 65 years of age, a U.S. citizen, or permanent legal resident for at least five consecutive years
– You are currently receiving retirement benefits.

OR
– You are disabled and receiving disability benefits
– You have End-Stage Renal Disease (ESRD)
– You have Lou Gehrig’s Disease (ALS).

 

What does Plan A Medicare Supplement Cover?

What does Medigap Plan A cover?
Medigap Plan A coverage covers the fewest expenses, offering the most basic benefits. Medicare Supplement insurance Plan A coverage will cover 100% of the following expenses:

– Coinsurance payments for Medicare Part A towards inpatient hospital care up to 365 days after Medicare benefits have been depleted
– Copayment or coinsurance costs for Medicare Part B
– The first 3 pints of blood needed for a medical procedure
– Coinsurance costs or copayment for Part A hospice care

All Medigap policies, including Plan A Medicare supplement, offer 100% coverage for hospital care coinsurance, as well as the 3 main categories:

– Copayments for Medicare Part B
– First thee (3) pints of blood
– Hospice care coinsurance

 

Medigap Plan A Cost
Medigap Plan A policyholders must pay for their Original Medicare deductibles. Additionally, this will leave them responsible for paying the coinsurance associated with skilled nursing facility care, as well as Medicare Part B excess charge. Also, Plan A does not cover foreign travel emergencies, even though most Medicare Supplement Plans do. If your main needs are out of what Medigap Plan A covers, Medigap supplement Plan A might not be the best option for you.

 

Is Medigap Plan A a good choice for you?
Medicare Supplement Insurance Plan A would be a good choice for your specific needs if you do not want to pay more expensive premiums for benefits you may never end up using. However, it is important to note that if a need arises for any of the services outside of the benefits covered by Plan A, you might end up paying more money in out-of-pocket expenses alone, which could be much more than what you would pay for a more comprehensive plan premium. This is why it is important to view your options carefully based on your needs before you make your choice.

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