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Medicare

Medicare Parts A, B, C and D Explained in Plain English

Medicare has four parts, and each covers something different. This plain-English guide explains Parts A, B, C and D, what they cost and how they fit together.

By the Bonivitas editorial team

Updated

3-minute read

Older couple sitting at a dining table reading documents together
Knowing what each part of Medicare covers makes your yearly plan choices much easier. Photo: Kampus Production / Pexels

Key takeaways

  • Part A covers hospital stays; Part B covers doctor visits, outpatient care and preventive services.
  • Parts A and B together are called Original Medicare. Part C, Medicare Advantage, is a private-plan alternative that bundles them.
  • Part D covers prescription drugs and is sold by private insurers.
  • Original Medicare has no yearly limit on what you pay, which is why many people add a Medigap policy or choose Medicare Advantage.

Medicare is the federal health insurance program for people 65 and older, and for some younger people with disabilities or certain conditions. It is not one single plan. It is made up of four "parts," each covering different kinds of care. Once you know what each part does, the choices you face each year make a lot more sense.

Part A: Hospital insurance

Part A helps pay for:

  • Inpatient care in a hospital.
  • Care in a skilled nursing facility after a qualifying hospital stay, for a limited time.
  • Hospice care.
  • Some home health care.

Most people pay no monthly premium for Part A because they or a spouse paid Medicare taxes for at least 10 years. You still pay a deductible for each hospital stay, $1,736 per benefit period in 2026, and daily costs for longer stays.

Part A does not cover long-term care in a nursing home when that is the only care you need, such as help with bathing or dressing.

Part B: Medical insurance

Part B helps pay for:

  • Doctor visits, including specialists.
  • Outpatient care, lab tests, X-rays and other imaging.
  • Preventive services such as many screenings and a yearly wellness visit.
  • Medical equipment such as walkers, wheelchairs and oxygen.
  • Ambulance services and some home health care.

Most people pay a monthly premium for Part B, $202.90 in 2026, plus a yearly deductible of $283. After that, you usually pay 20% of the Medicare-approved amount for most services. Higher-income people pay a larger premium.

Original Medicare

Part A and Part B together are called Original Medicare. With Original Medicare you can see any doctor or hospital in the country that accepts Medicare, usually without a referral.

The catch is that Original Medicare has no yearly limit on what you pay. Your 20% share of a major illness can add up. Many people fill that gap with a Medicare Supplement Insurance policy, called Medigap. Read Medigap basics for details.

Part C: Medicare Advantage

Medicare Advantage plans are offered by private insurance companies approved by Medicare. They replace Original Medicare as the way you get your Part A and Part B benefits. Most plans also include drug coverage, and many offer extras such as dental, vision and hearing benefits.

Key differences from Original Medicare:

  • Most plans use a network of doctors and hospitals, and you may pay more, or the full cost, outside it.
  • Plans often require prior approval for some services.
  • Every plan has a yearly limit on what you pay out of pocket for covered Part A and Part B services.
  • You still pay your Part B premium, plus the plan's premium if it has one.

Our guide to Original Medicare versus Medicare Advantage walks through questions to ask before you choose.

Part D: Prescription drug coverage

Part D helps pay for prescription drugs. You get it through a stand-alone drug plan, if you have Original Medicare, or as part of most Medicare Advantage plans. Each plan has its own list of covered drugs, called a formulary, and its own costs.

There is now a yearly cap on what you pay for covered drugs: $2,100 in 2026, rising to $2,400 in 2027. See Medicare Part D in 2027.

Putting it together

Most people end up with one of two combinations:

  1. Original Medicare (A and B) + a Part D drug plan + often a Medigap policy.
  2. A Medicare Advantage plan, which includes A and B and usually D.

Neither is right for everyone. The best fit depends on your health, your doctors, your budget and how much you travel.

Where to get unbiased help

Your State Health Insurance Assistance Program, or SHIP, offers free one-on-one Medicare counseling from trained counselors who do not sell insurance. Read how SHIP counseling works. You can also call 1-800-MEDICARE (1-800-633-4227) or compare plans with the Plan Finder at Medicare.gov.

Sources

We checked this guide against these sources. Figures change, so confirm current amounts with the source before you act.

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