Medigap Plan A is also known as Medicare Supplement Plan A. This plan is often times is completely overlooked because it has fewer benefits than many of the other Medigap insurance policies that are available.
It still covers the 20% of the Part B outpatient medical costs, which generally are the most important component inpatient medical care that Medicare doesn’t cover.
So despite its lack of popularity, make no mistake about it, Medicare Plan A pays this, so it’s still a plan with some good value.
Medigap Plan A is also an insurance coverage option is made available to people under age 65 in most states. So if you become eligible for Medicare early due to disability, this plan is available for purchase during your open enrollment period without any medical underwriting.
There are some concerns as the cost of this plan for people UNDER age 65, can be quite expensive, in fact as much as 3 times what someone 65 years old would have to pay. This is because people who receive Medicare before the age of 65 due to a disability often have much more medical costs than the average medicare beneficiary that is 65 or older. The medical claims paid by the insurance carriers are for persons receiving medicare early due to disability are often higher and those costs get passed on to you in the form of higher than average monthly premiums.
So most people looking at and comparing Medicare Supplement Plan A because of its value should really consider a Medicare Advantage plan, especially if you’re under 65 and may be facing some steep insurance premiums if you tried to purchase a Plan A. Why? Because if you purchase a Medicare Advantage plan, the rate is the same for everyone that enrols, age, gender, health conditions are not a factor for those eligible for Medicare Advantage part c. After you become age 65, you can use your turning 65 open enrollment period as an opportunity to change to a Medicare supplement insurance plan and have guaranteed issue
For people over age 65, Medicare Supplement Plan A will be priced just like any other supplement, but generally, Medicare beneficiaries over age 65 don’t choose it because of its lack of full benefits. Generally, they want something more comprehensive plans like a Plan For a Plan G that will give a lot more coverage.
Often people get confused about whether Plan A is the same thing as Part A. It’s not. Medicare Supplement or Medigap plan A is one of the plans that help to fill the gaps in Medicare coverage. (Medicare Part A, is your original Medicare hospital coverage that you become entitled to when turning 65 or receiving Medicare early due to a disability.)
If you find all this Part A and Plan A to be pretty confusing, believe us you are not alone. Our Medicare Coverage Helpline specialist will help you sort through the clutter and understand your coverage options.
Let us do all the work for you, contact us today at 866-936-3831.