Medicare has four main parts that help pay for health care services and prescription drugs for people age 65 or older and some younger people with qualifying disabilities.
Each part has different coverage, rules, and costs.
Knowing what each part does can help you choose the plan that fits your health needs and budget.
What Is Medicare Part A?
Medicare Part A is hospital insurance. It helps pay for emergency and non‑emergency inpatient hospital care, skilled nursing facility care after a hospital stay, hospice care, and some home health care. Most people qualify for premium‑free Part A if they or a spouse worked and paid Medicare taxes for at least ten years.
Calculate Your 2026 COLA Increase →Even with premium‑free Part A, you still pay costs like deductibles and coinsurance when you get care. In 2026, the Part A inpatient hospital deductible is $1,736 per benefit period. After you meet the deductible, you may pay daily coinsurance if your hospital stay lasts longer.
Part A helps cover much of your hospital costs, but it does not pay for all care or long‑term custodial care such as help with bathing or dressing.
What Is Medicare Part B?
Medicare Part B is medical insurance. It helps pay for doctor services, outpatient care, preventive services like flu shots, certain home health services, and durable medical equipment such as wheelchairs or walkers. Part B is part of Original Medicare, which also includes Part A.
In 2026, most people pay a standard Part B premium of $202.90 per month, though higher‑income beneficiaries pay more under Income‑Related Monthly Adjustment Amounts (IRMAA). The Part B deductible in 2026 is $283.
After the deductible, Original Medicare typically pays 80 percent of the approved amount for covered services, and you pay the remaining 20 percent.
Unlike Part A, Part B always has a monthly premium. If you delay enrolling in Part B when you are first eligible, you may pay a permanent late‑enrollment penalty.
What Is Medicare Part C?
Medicare Part C is known as Medicare Advantage. It is an alternative way to get your Medicare benefits. Instead of Original Medicare, you can choose an Advantage plan offered by private insurance companies approved by Medicare.
Medicare Advantage plans bundle Part A and Part B coverage and often include additional services such as prescription drug coverage (Part D), dental, vision, or hearing benefits. Costs for Medicare Advantage plans vary by plan. You must continue to pay your Part B premium to remain enrolled in a Medicare Advantage plan.
Many Medicare Advantage plans have low or $0 monthly plan premiums, but you might have copayments or coinsurance when you get care. These plans also often limit your choice of doctors to a network and may require referrals for specialists.
What Is Medicare Part D?
Medicare Part D provides prescription drug coverage. It is sold by private insurance companies approved by Medicare. If you join a Part D plan, you pay a monthly premium and cost sharing for prescription drugs that the plan covers.
Part D plans vary widely in cost and the drugs they cover. In addition to the plan’s premium, you may pay a deductible, copayments, or coinsurance for medications. Many beneficiaries also pay an income‑related premium surcharge if their income is above certain thresholds.
Prescription drug coverage is optional, but if you do not join a Part D plan when first eligible and go 63 days or more without credible drug coverage, you may pay a lifetime penalty when you eventually enroll.
How Do the Medicare Parts Work Together?
Original Medicare includes Part A and Part B coverage. You can add a Part D drug plan if you want drug coverage.
Some people also buy Medigap (Medicare Supplement) insurance to help pay out‑of‑pocket costs not covered by Original Medicare.
Part C (Medicare Advantage) replaces Original Medicare for most services. If you choose an Advantage plan, it includes Parts A and B and often Part D.
Medigap policies are not sold to people in Medicare Advantage plans.
Who Should Choose Each Part?
If you want broad provider choice and the freedom to see any doctor that accepts Medicare, Original Medicare plus a Part D plan (and possibly Medigap) might suit you. People who prioritize predictable costs and extra benefits like dental or vision often choose Medicare Advantage (Part C).
If prescription drug costs are a concern, Part D adds that coverage whether you use Original Medicare or a Medicare Advantage plan.
Choosing the right combination depends on your health needs, budget, and how much medical care and prescriptions you expect each year.
