Medicare Parts A, B, C, D: What Each One Covers
Key Takeaways
- Part A covers hospital & inpatient care — most people pay $0 premium
- Part B covers doctor visits & outpatient care — standard premium is $185/month
- Part C (Medicare Advantage) bundles A + B + usually D, often with extra benefits
- Part D provides prescription drug coverage — $2,000/year out-of-pocket cap
Table of Contents
Part A: Hospital Insurance
Part A is the foundation of Medicare. It covers inpatient care — situations where you're formally admitted to a hospital or facility. Most people qualify for premium-free Part A based on their work history (or their spouse's).
What Part A Covers
Inpatient hospital stays
Semi-private room, meals, nursing, drugs, supplies
Skilled nursing facility (SNF)
Up to 100 days following a qualifying hospital stay
Home health services
Part-time skilled nursing, therapy, aide services
Hospice care
Pain management and comfort care for terminal illness
Inpatient care in religious facilities
Non-medical services in qualifying facilities
2026 Part A Costs
Premium
$0/month
for most people
Deductible
$1,676
per benefit period
Days 1-60
$0/day
after deductible
Part B: Medical Insurance
Part B covers medically necessary outpatient services — everything from doctor visits and lab tests to preventive screenings and durable medical equipment. Unlike Part A, Part B requires a monthly premium.
What Part B Covers
Doctor & outpatient services
Office visits, specialist consultations, outpatient procedures
Preventive services
Annual wellness visits, flu shots, mammograms, colonoscopies
Durable medical equipment
Wheelchairs, walkers, hospital beds, oxygen equipment
Mental health
Outpatient therapy, psychiatric services, substance abuse treatment
Ambulance services
When medically necessary ground and limited air transport
Clinical lab tests
Blood work, urinalysis, biopsies, and other diagnostics
2026 Part B Costs
Standard Premium
$185/month
income-based adjustments apply
Annual Deductible
$257
then 20% coinsurance
Coinsurance
20%
of Medicare-approved amount
Did you know?
Some Medicare Advantage plans include a Giveback Benefit that reduces your Part B premium — putting money back in your Social Security check each month. Learn more →
Part C: Medicare Advantage
Medicare Advantage (Part C) is an alternative to Original Medicare offered by private insurance companies approved by Medicare. These plans must cover everything Parts A and B cover, but most also include additional benefits not available with Original Medicare.
As of 2026, over 54% of Medicare beneficiaries are enrolled in Medicare Advantage plans, and that number continues to grow each year.
Extra Benefits Often Included
Part D: Prescription Drug Coverage
Part D helps cover the cost of prescription medications. It's available as a standalone plan (with Original Medicare) or built into most Medicare Advantage plans. Thanks to the Inflation Reduction Act, out-of-pocket drug costs are now capped at $2,000 per year.
How Part D Coverage Works
Deductible
You pay 100% of drug costs until you meet your annual deductible ($590 in 2026 for most plans).
Initial Coverage
You pay copays or coinsurance for each prescription. The plan pays its share.
Coverage Gap
Starting 2025, the Inflation Reduction Act caps out-of-pocket costs at $2,000/year — eliminating the old 'donut hole.'
Catastrophic Coverage
After reaching the $2,000 cap, you pay $0 for covered drugs for the rest of the year.
Side-by-Side Comparison
| Part A | Part B | Part C | Part D | |
|---|---|---|---|---|
| Type | Hospital | Medical | Advantage | Drugs |
| Premium | Usually $0 | $185/mo | Varies ($0+) | ~$33/mo avg |
| Deductible | $1,676 | $257/yr | Varies | $590 max |
| Provider | Federal | Federal | Private | Private |
| Required? | Recommended | Recommended | Optional | Optional |
What Medicare Doesn't Cover
Original Medicare (Parts A & B) has notable gaps. These services are not covered:
Many Medicare Advantage plans cover several of these items, including dental, vision, and hearing. Compare your options →
Want to see which plans are available in your area?
Enter your ZIP code to see plans with extra benefits you may be missing.
Disclaimer
We are not affiliated with Medicare or any government agency. This content is for informational purposes only. Medicare has neither reviewed nor endorsed this information.
Got Questions?
Frequently Asked Questions
Not necessarily. Parts A and B (Original Medicare) are the foundation. Part C (Medicare Advantage) is an alternative to Original Medicare — you choose one or the other. Part D is optional but highly recommended to avoid late penalties, even if you don't take many medications now.
No. Medigap (Medicare Supplement) plans only work with Original Medicare (Parts A & B). If you enroll in Medicare Advantage (Part C), your Medigap plan cannot pay for any services. You would need to drop your Medigap before joining an Advantage plan.
Part C (Medicare Advantage) is a complete health plan that replaces Original Medicare — it includes hospital and medical coverage and usually drug coverage too. Part D is standalone prescription drug coverage that you add to Original Medicare. Most Advantage plans include Part D built in.
Part A is premium-free if you or your spouse paid Medicare taxes for at least 40 quarters (10 years) of work. If you don't qualify for premium-free Part A, you may pay up to $518/month in 2026. However, about 99% of Medicare beneficiaries qualify for premium-free Part A.
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