Medicare Plan A

Plan A is a type of Medigap plan that helps fill in the gaps in Medicare.
Plan A covers your 20% outpatient coinsurance.
Supplement Plan A is available in most states for those enrolled in Medicare under 65.

Medigap Plan A Benefits

Medicare Supplement Plan A is also referred to as Medigap Plan A. This plan is sometimes overlooked because it has fewer benefits than other Medigap insurance plans.

What does Medicare Plan A cover though?

It still covers the most important benefit, which is the 20% of outpatient medical care that Medicare doesn’t cover.

Medicare Plan A
is the most basic Medicare Supplement.

Medigap Plan A Benefits

Medicare Supplement Plan A is also referred to as Medigap Plan A. This plan is sometimes overlooked because it has fewer benefits than other Medigap insurance plans.

What does Medicare Plan A cover though? It still covers the most important benefit, which is the 20% of outpatient medical care that Medicare doesn’t cover.

The chart below shows basic information about the different benefits Medigap policies cover.

✔ = the plan covers 100% of this benefit
X = the plan doesn’t cover this benefit
% = the plan covers that percentage of this benefit and you’re responsible for the rest
N/A = not applicable

The Medigap policy will only pay your coinsurance after you’ve paid the deductible (unless the Medigap policy also covers your deductible).

Medicare Plan A for Disabled Under 65

Medigap Plan A is also the insurance policy that is made available to people under the age of 65 in most states. So if you qualify for Medicare early due to a disability, this policy is available for purchase during your Open Enrollment Period without underwriting.

Be aware, though, that the cost of this plan for people UNDER age 65, can be as much as 3 times what a 65-year-old will pay. This happens because people who qualify for Medicare due to a disability often have higher medical costs than the average 65 or older person. The loss ratios are higher and those costs get passed on to you in the form of rate increases.

For this reason, people on Medicare disability may want to look into Medicare Advantage plans. Why? Because on Medicare Advantage plans the rate is the same for anyone enrolled, regardless of age, gender, etc. Later when you turn 65, you can use the turning 65 Open Enrollment Period to change to a Supplement if you prefer that.

For people over age 65, Medigap Plan A will be priced just as any other Supplement, but not many people over age 65 do choose it. Generally, they choose more comprehensive plans like Plan F and Plan G that provide fuller coverage.

Don’t Confuse Medicare Plan A with Part A

People often feel confused about whether Plan A is the same thing as Part A. It is not. Medicare Supplement Plan A is one of the Supplement plans that helps to fill in the gaps in Medicare. (Medicare Part A, on the other hand, is your original Medicare hospital coverage.)