Medicare Part A covers hospital stays; Part B covers outpatient care and doctor visits; Part C (Medicare Advantage) bundles Parts A and B through a private insurer; Part D covers prescription drugs. Together, they form the four main building blocks of federal Medicare coverage.
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Medicare is the federal health insurance program for people 65 and older and for certain younger people with qualifying disabilities. It is administered by the Centers for Medicare & Medicaid Services (CMS). The program is divided into four distinct parts, each covering a different category of care. Understanding which part covers what is the first step to using Medicare effectively.
Medicare Part A covers inpatient hospital stays, skilled nursing facility care (following a qualifying hospital stay), hospice care, and some home health services. Most people do not pay a monthly premium for Part A if they or their spouse paid Medicare taxes for at least 10 years (40 quarters) while working. However, Part A has a per-benefit-period deductible (verify the current figure at Medicare.gov). Coinsurance charges apply for extended hospital stays beyond 60 days in a benefit period.
Medicare Part B covers outpatient care: doctor visits, preventive services, outpatient surgery, durable medical equipment, and mental health services. Part B has a monthly premium — the standard amount adjusts annually; higher earners pay more through the Income-Related Monthly Adjustment Amount (IRMAA). There is also an annual deductible, after which Medicare typically pays 80% of approved costs. Verify current Part B premium and deductible figures at Medicare.gov — they change each year.
Medicare Advantage (Part C) is an alternative way to receive your Part A and Part B benefits through a Medicare-approved private insurance company instead of directly through the federal program. Most Part C plans also include Part D (prescription drug coverage) and may offer additional benefits such as dental, vision, or hearing — none of which Original Medicare covers. To enroll in a Part C plan, you must already be enrolled in both Part A and Part B. Medicare Advantage plans vary by plan and location; compare options at Medicare.gov's Plan Finder.
Medicare Part D adds prescription drug coverage. It is available through stand-alone Prescription Drug Plans (PDPs) that work alongside Original Medicare (Parts A + B), or is often bundled into Medicare Advantage (Part C) plans. Part D plans are offered by private insurers approved by Medicare, and premiums, formularies (lists of covered drugs), and cost-sharing vary by plan. Higher earners pay an IRMAA surcharge on top of the Part D premium. Enroll when first eligible to avoid a potential late-enrollment penalty. Medicare.gov's Part D overview covers the full details.