What Are the Parts of Medicare? A Simple Breakdown

What Is Medicare?

Medicare is the federal health insurance program primarily for people age 65 and older, and for some younger people with certain disabilities or conditions. It's administered by the Centers for Medicare & Medicaid Services (CMS).

Understanding Medicare starts with knowing its four parts. Each part covers different services, and you can mix and match them depending on your needs.

Medicare Part A (Hospital Insurance)

Part A helps cover inpatient care in hospitals, skilled nursing facility care, hospice care, and some home health care. For most people, Part A is premium-free because they or a spouse paid Medicare taxes while working.

Medicare Part B (Medical Insurance)

Part B helps cover doctor visits, outpatient care, medical supplies, and preventive services. Most people pay a monthly premium for Part B. Together, Parts A and B are often called Original Medicare.

Medicare Part C (Medicare Advantage)

Part C, also known as Medicare Advantage, is an alternative to Original Medicare offered by private insurance companies approved by Medicare. These plans typically bundle Part A, Part B, and usually Part D coverage, and often include extra benefits like dental, vision, and hearing.

Medicare Part D (Prescription Drug Coverage)

Part D helps cover the cost of prescription medications. These plans are offered by private insurance companies approved by Medicare. You can add Part D to Original Medicare, or it may be included in a Medicare Advantage plan.

How the Parts Fit Together

You can choose Original Medicare (Parts A and B) and add a stand-alone Part D plan and a Medicare Supplement (Medigap) policy. Or you can choose a Medicare Advantage plan (Part C), which usually includes drug coverage and extra benefits in one package.