Although complementary to Medicare Part A, this policy is separate coverage sold by private insurance carriers. Medicare Part A coverage includes inpatient hospital care and is just 50% of what is known as Original Medicare (Part A & Part B). Medigap, on the other hand, provides coverage to help pay for out-of-pocket expenses that are not fully covered under Medicare Part A of Original Medicare.
It is mandatory by law that health insurance carriers, who sell Medigap insurance, offer Plan A. In all states, with the exception of Massachusetts, Minnesota, and Wisconsin, Medicare plans are standardized. This means that plans identified with the same letter type must provide the same basic benefits no matter which carrier is selling the plan. For example, Insurance Carrier Z selling Medicare Supplement insurance Plan F in Florida must have the same basic benefits as the same policy sold by Insurance Carrier Y in Georgia. The key disparity between the policies sold by these different carriers is the cost of the premium. Some companies may offer extra benefits with their Medigap policies, however, base benefits must be uniform across all companies. With that being said, the most suitable Best Medicare Supplemental Plans may be determined by their premium costs paired with the extra benefit options that they offer.
Medigap Plan A covers 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
Every standardized Medigap policy, including Medigap Plan A coverage, offers 100% coverage for hospital care coinsurance. All the plans provide coverage for the 3 main categories as well: Medicare Part B copayments, the first 3 pints of blood, and coinsurance for hospice care.
Policyholders of Medigap Supplement Plan A must pay for their deductibles under Medicare Part A & B. Additionally, they are responsible for paying for coinsurance associated with skilled nursing facility care, as well as Part B excess charges, and any costs associated with foreign emergency travel. If you require coverage for any of these non-covered benefits, there are other Medicare Supplement plans available to fill these gaps.
Is Medigap Plan A a good choice for you?
Why is Medigap Plan A more expensive than other plans? Medigap Plan A isn’t really on the expensive side compared to other Medigap plans, If you prefer not to pay more expensive premiums for benefits that you may never end up using, then Medicare Supplement Plan A could be the right policy for you. You should note that if a need arises for any of the uncovered categories outside of Medigap Plan A benefits, there is a real possibility of paying more costly out-of-pocket expenses.
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