What are the four parts of Medicare?
Medicare is split into four parts. Each part covers a different kind of care.
- Part A is hospital insurance.
- Part B is medical insurance.
- Part C is Medicare Advantage, a private plan option.
- Part D is prescription drug coverage.
You can read more about each part on the official Medicare parts page. For how Medicare connects to your benefits, see more on Medicare and Social Security.
What does Medicare Part A cover?
Part A is hospital insurance. It helps pay for care when you are admitted to a hospital or need certain follow-up care. According to Medicare.gov, most people do not pay a monthly premium for Part A if they or a spouse paid Medicare taxes long enough while working.
Part A covers:
- Inpatient hospital stays.
- Skilled nursing facility care after a qualifying hospital stay.
- Hospice care.
- Some home health care.
Part A does not cover everything. You may still owe a deductible and other costs.
What does Medicare Part B cover?
Part B is medical insurance. It covers care you get outside a hospital stay. Most people pay a monthly premium for Part B. You can check the current premium on Medicare.gov.
Part B covers:
- Doctor visits and other provider services.
- Outpatient care.
- Preventive services, like some screenings and shots.
- Durable medical equipment, such as wheelchairs and walkers.
- Some home health care.
What is the difference between Medicare Advantage and Original Medicare?
Original Medicare is Part A and Part B together, run by the federal government. You can see any doctor or hospital that accepts Medicare. You can add a separate Part D drug plan.
Medicare Advantage is Part C. These are plans offered by private companies that Medicare approves. A Medicare Advantage plan includes Part A and Part B, and often includes drug coverage and extra benefits. Many of these plans use a set network of doctors. You can compare both choices on Medicare.gov.
The main differences:
- Original Medicare lets you use any provider that accepts Medicare. Medicare Advantage may limit you to a network.
- Medicare Advantage often bundles extra coverage. Original Medicare does not.
- Costs and rules differ by plan.
Do I need Medicare Part D?
Part D adds prescription drug coverage. It is not required, but there is a catch. If you go without drug coverage after you are first eligible, you may pay a late enrollment penalty later. This penalty is explained on Medicare.gov.
You may not need a separate Part D plan if you already have drug coverage that is at least as good as Medicare's, or if you have a Medicare Advantage plan that includes drugs. If you are unsure which choice fits your situation, you can talk to a licensed advisor.
Frequently asked questions
What are the four parts of Medicare?
Part A is hospital insurance. Part B is medical insurance. Part C is Medicare Advantage, a private plan option. Part D is prescription drug coverage.
What does Medicare Part A cover?
Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care. Most people pay no monthly premium for it.
What does Medicare Part B cover?
Part B covers doctor visits, outpatient care, preventive services, and durable medical equipment like wheelchairs. Most people pay a monthly premium.
What is the difference between Medicare Advantage and Original Medicare?
Original Medicare is Part A and Part B run by the government, with any provider that accepts Medicare. Medicare Advantage is a private plan that bundles Part A and B, often with a set network and extra benefits.
Do I need Medicare Part D?
Part D is not required, but skipping it after you are first eligible can lead to a late enrollment penalty. You may not need it if you already have drug coverage that is as good as Medicare's.