Medigap Plan A Benefits: What You Need to Know

Medigap Plan A is a Medicare Supplement Insurance plan that covers certain out-of-pocket expenses such as copays and coinsurance associated with Medicare Part A and Part B coverage. Medigap Plan A includes only the basics for Medigap plans — the benefits that every Medigap plan covers.

Most Medicare beneficiaries opt for higher-coverage options like Plan G or Plan N — only about 1% choose Plan A. But if you don't want the added coverage, Plan A sometimes has lower premiums than other Medigap options.

Plan A isn’t always the cheapest, even though it has basic benefits. Read your quotes carefully when you’re shopping for plans. Sometimes, Medigap pricing can be unintuitive; for example, you might even see a high-coverage plan such as Plan G with prices below Plan A.

What is Medicare Supplement Plan A?

Original Medicare beneficiaries can buy a Medigap plan to help pay for out-of-pocket costs like deductibles, copays and coinsurance. These plans aren’t available for Medicare Advantage members.

There are 10 standardized Medigap plans available in most states (except Massachusetts, Minnesota and Wisconsin, which use different standards). The plans differ in terms of coverage for services, out-of-pocket limits and premium costs.

Medicare Supplement Plan A is the most basic of the standardized plans. It offers the benefits every Medicare Supplement Insurance plan has to cover, but nothing more.

What Medigap Plan A covers

Here’s what Medigap Plan A covers, according to Medicare.gov:

• Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.

• Part A hospice care coinsurance or copayment.

• Part B coinsurance or copayment.

• Blood transfusion (first three pints).

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What Medigap Plan A doesn’t cover

Here are the benefits Medigap Plan A doesn’t cover that are included in some other plans:

• Part A deductible.

• Part B excess charges (if a provider is permitted to charge more than Medicare’s approved amount and does so).

• Skilled nursing facility care coinsurance.

• Emergency care during travel outside the U.S.

Additionally, all Medigap plans, including Plan A, sold to new Medicare members don’t cover the following:

How much does Medigap Plan A cost?

Medicare Supplement Plan A is regulated by the federal government, but premiums are set by the private health insurance companies that sell the plan.

Medigap Plan A premiums for a 65-year-old female nonsmoker range from $109 to $225 per month in Atlanta, which has average costs among major U.S. metro areas for the most popular Medigap plan types.

A $109 Medigap Plan A policy has the same standardized Medicare coverage as one that costs $225. Companies may add on extra perks like discounted gym memberships, but the core Medicare benefits are the same, so go ahead and compare based on price.

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Buy Medigap Plan A during Medigap open enrollment

The easiest and least expensive time to enroll in a Medigap policy is during your Medigap open enrollment period.