Understanding the Four Parts of Medicare: A Summary Guide
Medicare can feel overwhelming at first but breaking it down into its four parts can help make it much easier to understand. Whether you’re enrolling for the first time or considering additional coverage, knowing how Medicare Parts A, B, C, and D work will help you make the best decisions for your health and budget.
What Are the Four Parts of Medicare?
Medicare Part A: Hospital Insurance
Medicare Part A covers inpatient hospital stays, skilled nursing facility care, hospice services, and some home health care.
Most people receive Part A premium-free if they have worked and paid Medicare taxes for at least 10 years.
Part A covers:
- Hospital stays
- Skilled nursing facility care
- Hospice care
- Some home health services
Medicare Part B: Medical Insurance
Medicare Part B helps pay for doctor visits, outpatient care, preventive services, and some home health care.
Part B covers:
- Doctor services
- Outpatient care
- Preventive services (like screenings and vaccines)
- Durable medical equipment (DME)
You’ll typically pay a monthly premium for Part B. It’s important to enroll during your Initial Enrollment Period to avoid a late penalty.
Medicare Part C: Medicare Advantage Plans
Medicare Part C, also known as Medicare Advantage, is offered by private insurance companies approved by Medicare. These plans bundle Part A and Part B — and often Part D — into one convenient plan.
Medicare Advantage Plans may include:
- All Part A and Part B benefits
- Prescription drug coverage
- Lower out-of-pocket costs in many cases
Medicare Part D: Prescription Drug Coverage
Medicare Part D offers prescription drug coverage to help lower the cost of your medications. These plans are offered by private insurance companies and can be added to Original Medicare (Parts A and B) or included in some Medicare Advantage plans.
Part D plans cover:
- Generic and brand-name prescription medications
- Medications for chronic conditions
- Vaccinations
Choosing the right Part D plan can make a significant difference in your healthcare costs.
Summary: The Four Parts of Medicare at a Glance
| Part | What It Covers | Key Points |
|---|---|---|
| Part A | Hospital Insurance | Premium-free for most |
| Part B | Medical Insurance | Monthly premium applies |
| Part C | Medicare Advantage | Combines Parts A, B, and often D |
| Part D | Prescription Drug Coverage | Helps with medication costs |
Which Medicare Coverage is Right for You?
Choosing between Original Medicare (Parts A and B), adding a Medicare Supplement (Medigap) plan, or enrolling in a Medicare Advantage plan can depend on your specific health needs and budget.