Medicare Parts Explained

Medicare has four parts. Original Medicare consists of Parts A and B; Medicare Advantage, or Part C, is an alternative way to receive Medicare benefits through an approved private plan.

Part A: Hospital insurance

Part A helps cover inpatient hospital care, skilled nursing facility care, hospice, and some home health care. Most people do not pay a Part A premium, but other costs can apply.

Part B: Medical insurance

Part B helps cover doctors’ services, outpatient care, preventive services, and medical equipment. A monthly premium usually applies, and deductibles and coinsurance may apply to covered services.

Part C: Medicare Advantage

Medicare Advantage plans are offered by Medicare-approved private companies and provide Part A and Part B benefits instead of Original Medicare. Most include Part D. Plans may use networks or require prior authorization, and costs vary.

Part D: Drug coverage

Part D helps cover prescription drugs. It is available through a separate Medicare drug plan with Original Medicare or a Medicare Advantage plan that includes drug coverage. Check each plan’s formulary, pharmacies, and costs.

Medigap is supplemental insurance, not Part C

Medigap policies can help pay some cost sharing under Original Medicare. A Medigap policy cannot be used to pay Medicare Advantage cost sharing. Lettered Medigap plans, such as Plan C, are not the same as Medicare Parts.

Sources: Medicare.gov: Parts of Medicare and Compare Original Medicare and Medicare Advantage. For cost planning, use the checklist and verify current costs with Medicare.