Medicare Basics

The parts of Medicare

Part A — Hospital insurance

Generally helps cover inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. Many people do not pay a monthly premium for Part A if they or a spouse paid Medicare taxes long enough while working.

Part B — Medical insurance

Generally helps cover doctors' services, outpatient care, medical supplies, and many preventive services. Part B usually has a monthly premium.

Together, Parts A and B are called Original Medicare. With Original Medicare you can generally see any doctor or hospital in the U.S. that accepts Medicare.

Part C — Medicare Advantage

Medicare Advantage plans are offered by private companies approved by Medicare. They include Part A and Part B coverage and often include drug coverage. Plans may have provider networks, different costs, and different rules than Original Medicare.

Part D — Prescription drug coverage

Part D plans are offered by private companies and help cover the cost of prescription drugs. Each plan has its own list of covered drugs (called a formulary), pharmacy network, and costs. No plan covers every medication, so it's important to check each plan's formulary for your specific prescriptions.

Medicare Supplement (Medigap)

Medigap policies are sold by private companies and can help pay some costs Original Medicare doesn't cover, such as copayments and deductibles. They work only with Original Medicare, not Medicare Advantage.

Things to keep in mind

• Coverage, costs, eligibility, and plan availability vary by person and location.
• Plans can change their costs and coverage each year.
• Verify details at Medicare.gov or through free SHIP counseling.

Next: learn about enrollment periods or Medicare costs.