Explained: What Does Medicare Supplement Plan A Cover?

Figuring out your healthcare coverage as you approach 65 can be confusing. You want to ensure you have the best Medicare plan for your needs without breaking the bank. This leads to questions like, “What does Medicare Supplement Plan A cover?” And “Is it the same as Part A?”

In this article, we’re exploring the details of Medicare Supplement Plan A so you can make the most informed decision about your healthcare.

What is Medicare Supplement Plan A?

First things first – what are Medicare Supplement Plans?

As you may know, Medicare is the federal health insurance program for those 65 years or older and certain individuals with disabilities. However, Original Medicare doesn’t always cover all your medical costs, leaving you with out-of-pocket expenses.

This is where Medicare Supplement Insurance Plans, also known as Medigap, come in. Medigap helps fill in those coverage gaps. It’s important to remember that Medicare Supplement Insurance is sold by private insurance companies, not the government, to help cover those “gaps” in Original Medicare.

Different Medigap plans, lettered A through N (excluding E, H, I, and J), are available. Each plan offers a different level of coverage, as the following chart shows:

So, what does Medicare Supplement Plan A cover?

Plan A is the most basic Medicare Supplement plan. While this makes it usually the most affordable, it also has the least additional coverage. However, it still offers valuable benefits, filling the coverage gaps in Original Medicare, which is why these policies are also known as Medigap plans.

What Medicare Supplement Plan A Covers:

Plan A provides additional coverage to Original Medicare Part A and Part B for benefits such as:

• Hospitalization: Plan A covers 100% of Medicare Part A hospital and coinsurance costs for up to 365 days after your Medicare benefits run out. This means extended hospital stays won’t leave you with overwhelming bills.
• Medical expenses: It covers 100% of the 20% coinsurance Medicare Part B typically charges. This means you won’t pay anything for covered services after meeting your Part B deductible.
• Blood: Plan A will cover 100% of the cost for the first 3 pints of blood needed in a calendar year.
• Part A Hospice Care: This coverage helps with hospice services, including respite care and copayments, when facing a terminal illness.

What Medicare Supplement Plan A Doesn’t Cover

Knowing the limitations of Plan A is important because healthcare needs vary. Some of the significant things it does not cover are:

• Part A Deductible: The Part A deductible in 2024 is $1,632. Plan A does not cover this cost, leaving you to pay it if you’re hospitalized.
• Part B Deductible: You’ll pay the Medicare Part B deductibles, $240, out-of-pocket. Plan A won’t kick in until after you’ve paid this amount.
• Skilled nursing facility care: Plan A will not cover costs if you require care in a skilled nursing facility after a hospital stay. This is an important consideration when choosing the best insurance plan for you.
• Part B Excess Charges: When doctors or providers charge more than what Medicare covers, those extra charges are your responsibility. Plan A does not cover them.
• Foreign travel emergencies: Plan A doesn’t offer coverage for medical emergencies that occur while you’re traveling outside the United States.
• Prescription drugs: Plan A does not cover prescription drugs, and no Medigap plans sold today offer drug coverage. You must select one of your area’s Part D drug plans to do this.

Is Medicare Supplement Plan A Right For You?

Choosing a Medicare Supplement Insurance plan is a personal decision based on several factors. These factors include your health, budget, and personal preferences. You can weigh your options with the available supplement insurance plans for 2024. You’ll need to consider how much coverage you’re comfortable with and what you can afford in monthly premiums.

Who might benefit from Plan A?

Everyone should be familiar with Medigap Enrollment rules before they decide. Those in good health and who don’t anticipate needing extensive medical care as they age may prefer Plan A. This is because Plan A is more affordable and provides solid inpatient coverage.

Since Plan A covers the 20% coinsurance you’d typically pay under Original Medicare Part B for covered medical expenses, those costs can add up if you require frequent doctor visits or have ongoing health conditions. Plan A covers these costs.

Plan A is standardized. This means that if you were to move to a different state, you would have no problem taking the coverage with you. Just be aware that the cost could change.

Things to Consider:

This begs the question, “Is Medigap worth it?” When considering a Medigap plan like Plan A, here are some factors to keep in mind:

• Your Health: How’s your health? Do you anticipate needing more coverage? Are there any prescription drugs you take that might require a more comprehensive insurance plan?
• Premium Costs: How much can you afford for a premium?
• Potential Out-of-Pocket Expenses: If an emergency arises, can you cover the out-of-pocket expenses of unrecovered items? This includes deductibles, should you need to use your insurance.

There is no right or wrong answer when choosing a supplement. Comparing all of your options is highly encouraged. If you’re unsure what plan fits best, it’s always wise to seek advice from a licensed insurance agent specializing in Medicare. For a breakdown of other plans available, look at some of the Medicare Supplement plans and what they cover.

FAQs About What Does Medicare Supplement Plan A Cover

What are the core benefits of Medicare Supplement Plan A?

Plan A covers Part A coinsurance, Part B coinsurance, the first three pints of blood, and hospice care. Medicare Supplement Plan A does not cover the Part A deductible.

Do Medicare Supplements cover Part A?

Medicare Supplements work in conjunction with Original Medicare. This means they will help pick up some of the costs associated with Part A and B, depending on your chosen plan. Medicare Part A and Part B both have separate deductibles.

What do Medicare Supplements pay for?

Medigap plans, including Plan A, help to fill the gaps in your Original Medicare coverage. They offer different levels of coverage for expenses like coinsurance, copays, and deductibles. What’s covered can depend on your chosen plan. All plans have different levels of coverage, so it is important to know your needs.

What does Medicare Part A cover?

Medicare Part A helps cover expenses related to inpatient hospital care. This includes costs such as a semi-private room, meals, general nursing, and other necessary supplies while in the hospital. It also helps cover skilled nursing facility care and hospice care.

What Insurance Company has the best Plan A supplement policy?

You’re probably trying to save money on your Medicare costs. Plan A might be a good place to start because it may have a lower monthly premium. However, Plan A also offers the least coverage compared to other Medigap plans.

Picking the right insurance company for your Medicare Supplement Plan A is a big decision. All insurance companies must offer the same benefits for a Plan A. But this doesn’t mean they’ll cost the same. You’ll need to compare plans from AARP, Mutual of Omaha, Aetna, Humana Medicare, Blue Cross Blue Shield, Loyal American, and many others to get a feel for the rates.

Here are a few things that can affect the price you pay for a Medicare Supplement Plan A:

• Where you live
• Your age
• Your gender
• If you smoke

Conclusion

Navigating your healthcare choices can be daunting. Many wonder what Medicare Supplement Plan A covers. Knowing which plans work for you can help give you peace of mind about your healthcare. Consider your personal health needs and budget before committing to a plan.

It is important to remember that choosing a Medigap plan is a significant decision. Weighing your options carefully is imperative. Doing so will help you feel confident about choosing comprehensive and affordable healthcare coverage as you retire. Choosing between Original Medicare, Medicare Advantage, or Medicare Supplement plans can be tough.