Stop Wasting Money on Medicare Plan A – Choose Better Plans

Medicare Plan A is hands down the worst Medicare supplement option you can choose. Despite being marketed as an “affordable” entry-level plan, Plan A offers minimal coverage while charging premiums that are often just $10-20 less than comprehensive Plan G or Plan N. After working with thousands of Medicare clients, I’ve seen too many people choose Plan A thinking they’re saving money, only to face thousands in unexpected medical bills.

What Medicare Plan A Actually Covers (And What It Doesn’t)

Medicare Plan A is the most basic Medicare supplement plan available. It covers only the bare minimum — essentially just Medicare Part A coinsurance and hospital costs beyond your Medicare coverage. Here’s the complete breakdown of what Plan A covers:

• Medicare Part A coinsurance and hospital costs (for days 61-90 and lifetime reserve days)
• 365 additional lifetime reserve days after Medicare benefits are exhausted
• Medicare Part B coinsurance or copayment (typically 20% of Medicare-approved amounts)
• Blood (first 3 pints)

That’s it. Plan A doesn’t cover three major expenses that can cost you thousands:

• Part A hospital deductible: $1,736 each benefit period
• Skilled Nursing Facility coverage: No coverage for the daily copayments
• Foreign travel emergency: No coverage for medical emergencies abroad

Agent Tip

I’ve had clients tell me they chose Plan A to “save money” only to discover they still owed the full $1,736 hospital deductible on their first hospital stay. The premium savings evaporated instantly with that one bill.

The Real Cost of Choosing Plan A

Let me walk you through a real-world scenario that shows why Plan A is such a poor choice. Imagine you have a health episode that requires hospitalization followed by skilled nursing care — not uncommon for Medicare beneficiaries.

With Plan A, you’d be responsible for:

• Hospital deductible: $1,736 (Plan A doesn’t cover this)
• Skilled nursing facility costs: $29.50 per day for days 21-100 if you need extended care
• Part B deductible: $283 annually

Even a 30-day skilled nursing stay would cost you an additional $885 on top of the hospital deductible. That’s nearly $2,600 in out-of-pocket costs that better Medicare supplement plans would cover.

Why Plan G and Plan N Are Superior Choices

Instead of wasting money on Plan A, consider Plan G or Plan N — both offer significantly better coverage for similar premiums. Here’s what these plans cover that Plan A doesn’t:

Plan G Additional Benefits:

• Part A hospital deductible ($1,736)
• Skilled Nursing Facility coinsurance
• Foreign travel emergency coverage (up to $50,000)
• Part B excess charges (up to 15% above Medicare-approved amounts)

Plan N Additional Benefits:

• Part A hospital deductible ($1,736)
• Skilled Nursing Facility coinsurance
• Foreign travel emergency coverage (up to $50,000)

The only difference is that Plan N requires small copayments (up to $20 for office visits and up to $50 for emergency room visits that don’t result in admission) and doesn’t cover Part B excess charges.

The Premium Reality Check

Here’s what surprises most people: Plan A premiums aren’t significantly cheaper than Plan G or N. In many states, the premium difference is less than $30 per month. When you consider that a single hospital stay could cost you $1,736 out of pocket with Plan A, those minimal premium savings disappear quickly.

I regularly see Plan A premiums that are only $10-20 less than Plan G in the same zip code with the same insurance company. That’s less than $240 per year in savings, while your potential out-of-pocket exposure increases by thousands.

Agent Tip

When comparing Medicare supplement plans, always look at the total annual cost (premiums plus potential out-of-pocket expenses) rather than just the monthly premium. Plan A almost always costs more in the long run.

Better Alternatives to Plan A

Plan G remains the most comprehensive Medicare supplement option and is my top recommendation for most clients. It covers everything except the Part B deductible, giving you predictable healthcare costs and peace of mind.

Plan N offers nearly the same coverage as Plan G but with small copayments that can result in lower premiums. For healthy individuals who don’t visit the doctor frequently, Plan N can provide excellent value.

Both plans include the foreign travel benefit, which provides up to $50,000 in coverage for emergency medical care during your first 60 days of travel outside the United States. This benefit alone can be worth thousands if you travel internationally.

When Plan A Might Make Sense (Spoiler: Rarely)

In my years of experience, I can count on one hand the number of times I’ve recommended Plan A. The only scenario where it might make sense is if:

• You have extremely limited income and the premium difference is substantial (more than $50/month)
• You have other comprehensive health coverage that fills the gaps
• You’re in a guaranteed issue situation and Plan A is your only option

Even in these rare cases, I’d still encourage exploring Plan G vs Plan N options first.

How to Switch Away From Plan A

If you currently have Plan A and want to switch to better coverage, your options depend on your situation. The best time to switch is during your first 12 months on Medicare when you have guaranteed issue rights.

After that period, you may need to go through medical underwriting to switch plans. However, some states have special rules that make switching easier. For example, California’s Birthday Rule allows you to switch to any plan with equal or lesser benefits without medical underwriting.

Plan	Part A Deductible	SNF Coverage	Foreign Travel	Typical Premium Difference
Plan A	❌ Not Covered	❌ Not Covered	❌ Not Covered	Baseline
Plan G	✅ Covered	✅ Covered	✅ $50,000	+$10-30/month
Plan N	✅ Covered	✅ Covered	✅ $50,000	+$5-25/month

Frequently Asked Questions

Is Medicare Plan A the cheapest supplement option?

While Plan A typically has the lowest premium among Medicare supplement plans, the difference is often minimal — usually $10-30 per month less than Plan G or N. When you factor in the potential out-of-pocket costs that Plan A doesn’t cover, it’s actually the most expensive option overall.

What happens if I need skilled nursing care with Plan A?

Plan A provides no coverage for skilled nursing facility costs. You’d be responsible for the daily copayment of $29.50 for days 21-100, which can add up to over $2,300 for an extended stay. Plan G and Plan N both cover these costs completely.

Can I switch from Plan A to Plan G without medical underwriting?

This depends on your state and timing. You have guaranteed issue rights during your first 12 months on Medicare. After that, most states require medical underwriting to switch to a more comprehensive plan. Some states like California, Nevada, and others have special rules that may allow switching without underwriting.

Does Plan A cover prescription drugs?

No, Medicare supplement plans (including Plan A) don’t cover prescription drugs. You’ll need a separate Medicare Part D plan for prescription drug coverage, regardless of which supplement plan you choose.

Why do insurance companies still sell Plan A if it’s such a poor value?

Insurance companies are required to offer Plan A in states where they sell Medicare supplements, as it’s part of the standardized plan structure. However, most reputable agents rarely recommend it due to the poor value proposition compared to other available plans.