Learn about the different parts of Medicare

Medicare is a U.S. federal health insurance program. It’s mainly for people 65 and older. But it also covers care for some people with disabilities. It’s one of the most important benefits you can have.

Medicare has different parts. You need to understand the parts of Medicare to choose the ones that best fit your needs. Each part has different costs, like premiums, deductibles and copays. Let’s look at each part of Medicare and see how they can help you.

A quick look: The parts of Medicare 

Original Medicare — Parts A and B

Medicare Parts A and B were the first two parts offered by the government when Medicare started. So, together, we call them “Original Medicare.” Most people sign up for both parts at the same time. And you need to enroll in Original Medicare, both Parts A and B, before you can join a Medicare Advantage plan or a Medicare Supplement plan (Medigap).

Original Medicare helps to cover your care for hospital stays, regular checkups and more. Read on to learn more about Part A and Part B.

Medicare Part A — Covers your hospital care

What does Medicare Part A cover?

Part A covers your hospital stays and more. It covers the care you get when you stay in the hospital and some care once you leave. This can include nursing care, skilled care and hospice.

What does Medicare Part A cost?

Did you or your spouse pay Medicare payroll taxes for 40 quarters (10 years) or more? If so, you probably won’t pay a monthly premium (fee) for Medicare Part A. But you’ll need to pay a deductible before Medicare covers your hospital costs.

Medicare Part B — Covers your doctor visits and more

What does Medicare Part B cover?

Part B covers your doctor visits. When you have Medicare Part B, you can see any doctor who accepts Medicare. 

Part B also covers:

• Durable medical equipment (DME)

• Outpatient procedures (even if they occur at a hospital)

• Lab tests

• Other tests and medical care

What does Medicare Part B cost?

Most people pay a monthly premium for Medicare Part B. You’ll also need to pay a deductible before Part B starts to pay for your care. If you earn more than a certain amount of income, you pay extra each month. This extra fee is called a Part B Income Related Monthly Adjustment Amount (IRMAA). Check our Medicare costs FAQs to learn more.

Original Medicare

Medicare Part C — Combined coverage plus added benefits

What does Medicare Part C cover?

Part C plans are also known as Medicare Advantage (MA) plans. These plans are offered by private insurance companies. To sign up, you need to enroll in Part A and Part B first. Then, you can choose a Medicare Advantage plan that fits your needs. Once you enroll in a Medicare Advantage plan, that plan handles your Part A and Part B.

But they can also cover more, like:

• Dental, vision or hearing services
• Over-the-counter (OTC) benefits
• Fitness club memberships

Medicare Advantage (Part C) = Part A + Part B + added benefits

You can also choose a Medicare Advantage plan with prescription drug coverage (MAPD).

Medicare Advantage (Part C) + drug coverage (Part D) = MAPD

What does Medicare Part C cost?

With a Medicare Advantage plan, you still pay your Part B monthly premium to Medicare. You might also pay an extra premium to your Medicare Advantage provider. And you may have other costs. But you’ll have limits on how much you pay each year for covered care. This is called an out-of-pocket maximum. Original Medicare doesn’t have this limit.

Each Medicare Advantage plan has a network of health care providers. Using a network this way helps them keep costs low. Plans use those savings to give added benefits to members. For some plans, you have to use the doctors and other providers in their network. Other plans let you see doctors outside the network, but it can cost more.

Before you choose a Medicare plan

As you look at Medicare Advantage plan options, think about whether you want to keep seeing your current doctors. Find out if they’re in the plan’s network. If you have to switch, make sure your new provider accepts Medicare and is open to new patients.

To learn more about Medicare Part C plans, go to "Unpacking Medicare Advantage."

Medicare Part D — Prescription drug coverage

What does Medicare Part D cover?

Part D helps cover your prescription drug costs. Like Medicare Advantage plans, Part D plans are offered by private insurance companies. Each Part D plan has a list of drugs it covers. This list is called a formulary. When you look at a plan, check if your drugs are on the list.

A Part D drug plan can also give you benefits like a long-term supply and mail order delivery.

There are two ways you can get Part D coverage:

1. If you choose Original Medicare, you can enroll in a stand-alone Part D plan.
2. If you choose a Medicare Advantage plan, you can find one with Part D coverage (also called an MAPD plan).

What does Medicare Part D cost?

Most people pay a monthly premium for Part D coverage. You may also need to pay a deductible before Part D starts to pay for your drugs. Like Part B, if you earn more than a certain amount, you’ll pay extra each month (a Part D IRMAA). Check our Medicare costs FAQs to learn more.

You may also have some out-of-pocket costs for your drugs. Just remember that each plan has its own premiums, drug prices and list of drugs they cover.

To learn more about Medicare Part D plans, go to “Unpacking Part D.”

Medicare Supplement Insurance plans (Medigap)

What do Medigap plans cover?

Medicare Supplement plans are also known as Medigap plans. Like Medicare Advantage plans, these plans are sold by private insurance companies. They help cover some of the out-of-pocket costs with Original Medicare, like your: 

• Copays
• Coinsurance
• Deductibles

Medigap plans are only for people with Original Medicare. If you have a Medicare Advantage plan, you can’t buy a Medigap plan.

What do Medigap plans cost?

Medigap plans charge a monthly premium. The cost of the premium varies with the plan.

To learn more about Medigap plans, go to “Unpacking Original Medicare: What Parts A and B cover — and when to consider a Medicare Supplement plan.”

How to combine Medicare parts

Need more help to decide which parts of Medicare you need? Read more on how to combine the parts of Medicare.