Medicare supplement Plan A does offer coverage for some of the out-of-pocket expenses that remain after Original Medicare has paid its portion. Of all the Medicare supplement plans, Plan A includes the least amount of benefits. But because of that, it also has the lowest premiums. It is one of ten standard plans that gives supplemental coverage.
Plan A provides you with the least amount of benefits of all Medigap policies. It offers basic benefit coverage for what is called the core policy benefits. Core policy benefits are included in all Medigap plans. It is the most basic Medicare Supplement plan, providing the lowest level of coverage.
Medigap Plan A is well-suited for individuals who need a low monthly premium and are not concerned about out-of-pocket hospital costs. It is also only recommended coverage for people who do not travel outside of the United States.
PLAN A COVERAGE
Medicare Supplement Plan A covers only core policy benefits, and they are:
- Hospitalization – it covers Part A costs and gives coverage for additional 365 days after Medicare benefits end
- Medical Expenses – covers Part B coinsurance costs and copayments for outpatient services in hospitals
- Blood – first 3 pints each year
- Hospice care – covers Part A hospice care coinsurance
Medigap Plan A does not cover the Part A or B annual deductible, the coinsurance for skilled nursing care, the Part B excess charges, or any coverage for foreign travel emergency room visits. It is the most basic supplemental insurance. So with this plan, you will probably have high pocket costs.
PLAN A COSTS
Individual premiums for Medicare Supplement insurance plans will vary based on which state the individual is seeking coverage in, which insurance companies they are purchasing from, and also individual factors like gender, age, tobacco use, and a few other details. The average cost for Plan A ranges from $110-$180 per month. In general, Medigap plans premiums are higher in states who have a higher cost of living.
PLAN A FOR INDIVIDUALS YOUNGER THAN 65
Not all Supplemental plan options are available to individuals who are eligible for Medicare but are still under 65 years old. Sometimes, Plan A is the only option and the premium is often double or triple what it is for Medicare plan enrollees who are 65 and older. The reason for the higher premium is that Medicare beneficiaries who have become eligible due to a disability often have higher medical costs.
Individuals who are receiving Social Security disability benefits are the ones individuals who are eligible for a second open enrollment period without having to pass medical underwriting. When they turn 65, the second OEP begins and they will have the opportunity to exchange the Medigap plan.