The parts of Medicare: A, B, C and D

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, hospice care and some home health care.

• Premium: Most people pay no monthly premium for Part A because they or their spouse paid Medicare taxes for about 10 years (40 quarters). Others can buy it. In 2026 it costs $311 a month with 30–39 quarters of work, or $565 a month with fewer than 30.
• Deductible: $1,736 for each benefit period in 2026, before Part A starts to pay. Longer stays can have daily coinsurance.

Part B: medical insurance

Part B helps pay for doctors’ services, outpatient care, preventive services, lab tests, durable medical equipment like walkers, and some home health care.

• Premium: The standard premium is $202.90 a month in 2026. People with higher incomes pay more. 2027 amounts haven’t been announced yet.
• Deductible: $283 a year in 2026. After that, you usually pay 20% of the Medicare-approved amount for most services.
• Timing matters: If you don’t sign up when you’re first eligible and don’t have coverage from a current job, you may pay a late penalty for as long as you have Part B.

Part C: Medicare Advantage

Medicare Advantage plans are offered by private insurance companies approved by Medicare. They replace Original Medicare (Parts A and B) as the way you get your benefits.

• What they cover: Everything Original Medicare covers, except hospice care, which Original Medicare still pays for. Most plans include drug coverage.
• Networks: Many are HMOs or PPOs with a network of doctors and hospitals. You may need referrals, and care outside the network can cost more or not be covered.
• Yearly limit: Every plan has a yearly limit on what you pay for covered services in its network.
• Extra benefits: Some plans include dental, vision or hearing benefits. Benefits, premiums and networks vary by plan and area.
• Costs: You keep paying your Part B premium, and some plans charge their own premium.
• Medigap doesn’t work with it: You can’t use a Medicare Supplement policy with a Medicare Advantage plan.

Part D: prescription drug coverage

Part D plans are offered by private insurance companies. You can get Part D as a stand-alone plan with Original Medicare, or through a Medicare Advantage plan that includes drug coverage.

• 2027 limits: A Part D plan can have a deductible of up to $700, and your out-of-pocket costs for covered drugs are capped at $2,400 for the year (2026: $615 and $2,100).
• Late penalty: If you go 63 days or more without Part D or other creditable drug coverage after you’re first eligible, you may pay a penalty for as long as you have Part D. People with Extra Help don’t pay it.

Medicare Supplement (Medigap)

Medigap policies are sold by private insurance companies to people with Original Medicare. They help pay costs Original Medicare doesn’t, like the 20% Part B coinsurance and the Part A deductible, depending on the plan.

• Best time to buy: Your one-time, 6-month Medigap Open Enrollment Period starts the first month you have Part B and are 65 or older. During it, insurers can’t turn you down or charge more because of your health.
• After that: In most states, insurers can use your health to decide whether to sell you a policy and what to charge. Some states give extra rights.
• No drug coverage: Medigap plans sold today don’t include drug coverage, so most people add a Part D plan.

Which combination fits you?

• Original Medicare + Medigap + Part D can work well if you want to see any doctor or hospital that takes Medicare and want more predictable out-of-pocket costs.
• Medicare Advantage can work well if you’re comfortable with a network and want drug coverage and possible extra benefits in one plan.

The right choice depends on your doctors, prescriptions, budget and how you like to get care. A licensed agent can compare options in your area with you, and you can always get free, unbiased help from Medicare.gov, 1-800-MEDICARE (TTY 1-877-486-2048, 24 hours a day, 7 days a week) or your State Health Insurance Assistance Program.

More Medicare topics

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