What’s the Difference Between Medicare Parts A, B, C, and D?

Breaking Down the Basics of Medicare Coverage

When it’s time to start thinking about Medicare, it’s easy to feel overwhelmed by all the different “parts.” Parts A, B, C, and D each cover different aspects of your health care—and understanding how they work together is key to choosing the right coverage for your needs.

Here’s a simple breakdown of what each part does and how they fit into the bigger Medicare picture.

Part A: Hospital Insurance

Part A covers inpatient care, including:

• Hospital stays

• Skilled nursing facility care

• Hospice care

• Some home health care

For most people, Part A is premium-free if you or your spouse paid Medicare taxes while working. However, there may still be deductibles and coinsurance costs when you receive services.

Part B: Medical Insurance

Part B covers services like:

• Doctor visits

• Outpatient care

• Preventive care (like flu shots or screenings)

• Durable medical equipment (like walkers or wheelchairs)

Part B does come with a monthly premium, which is based on your income. It also includes an annual deductible and typically covers 80% of approved services after that deductible is met.

Part C: Medicare Advantage

Also known as Medicare Advantage, Part C is an alternative to Original Medicare (Parts A and B). These plans are offered by private insurance companies approved by Medicare.

Medicare Advantage plans often include:

• All services covered under Parts A and B

• Prescription drug coverage (Part D)

• Extra benefits like vision, dental, hearing, or fitness programs

You still need to enroll in Parts A and B to join a Part C plan, and you’ll continue paying the Part B premium—plus any additional premium the plan may charge.

Part D: Prescription Drug Coverage

Part D helps cover the cost of prescription medications and is offered by private insurers. Each plan has a list of covered drugs (called a formulary), and costs can vary based on the medications you take.

You can add Part D to Original Medicare or certain Medicare Advantage plans that don’t include drug coverage. It’s important to enroll when you’re first eligible to avoid a late enrollment penalty.

Putting It All Together

Think of Medicare like a menu—you can choose the combination that best suits your health care needs and financial situation.

• Original Medicare = Parts A + B

• Optional Add-ons: Part D and/or a Medigap (supplement) plan

• All-in-one option: Part C (which may bundle A, B, and D with extras)

Final Thoughts

Understanding the differences between Medicare Parts A, B, C, and D can help you feel more confident as you make decisions about your coverage. Whether you’re approaching age 65 or helping a loved one navigate their options, the key is to assess your health needs, budget, and preferences before enrolling.

Still have questions about which combination might be right for you? It’s always a good idea to reach out to your financial advisor for guidance tailored to your unique situation.