The 4 Parts of Medicare, Explained Simply

Medicare is split into parts, and the alphabet soup trips up almost everyone. Here's what each part actually does, in plain language.

Part A — Hospital Insurance

Part A covers inpatient care: hospital stays, skilled nursing facility care, hospice, and some home health care. Most people pay no monthly premium for Part A because they (or a spouse) paid Medicare taxes while working for about 10 years.

Part B — Medical Insurance

Part B covers outpatient care: doctor visits, preventive screenings, lab work, and durable medical equipment like walkers and wheelchairs. Part B has a monthly premium set by Medicare each year, and higher earners pay a bit more.

Together, Part A and Part B are called Original Medicare. They cover a lot, but not everything, and there's no yearly cap on what you could pay out of pocket. That gap is where the next choices come in.

Part C — Medicare Advantage

Part C, or Medicare Advantage, is an all-in-one alternative offered by private insurers. These plans bundle Part A and Part B, usually add prescription drug coverage, and often include extras like dental, vision, and hearing, frequently for a low or $0 monthly premium. They use provider networks and include a yearly out-of-pocket maximum.

Part D — Prescription Drug Coverage

Part D covers prescription medications. You can get it as a standalone plan alongside Original Medicare, or built into most Medicare Advantage plans. Every Part D plan has its own list of covered drugs, so the right plan depends on the exact medications you take.

Where does Medigap fit?

A Medicare Supplement (Medigap) plan isn't a separate part, it's an add-on that pairs with Original Medicare to help cover the deductibles and coinsurance Parts A and B leave behind. You'd use Medigap instead of a Medicare Advantage plan, not on top of one.

This guide is general education, not personal advice, and plan details and figures change. For complete information on all your options, contact Medicare.gov or 1-800-MEDICARE. Legend Insurance Solutions is not connected with or endorsed by the government or the federal Medicare program.