Medicare is the federal health insurance program for people 65 and older, and for certain younger individuals with disabilities or specific conditions. It’s divided into four main parts, each covering different types of care.
Medicare Part A – Hospital Insurance
- Covers inpatient hospital stays, hospice, skilled nursing facility care, and some home health care.
- Most people pay no premium, but there are deductibles and coinsurance costs.
Medicare Part B – Medical Insurance
- Covers doctor visits, outpatient care, durable medical equipment (DME), and preventive services.
- Requires a monthly premium, plus an annual deductible and 20% coinsurance on most services.
Medicare Part C – Medicare Advantage
- Private insurance alternative to Original Medicare.
- Must include all Part A and B benefits, and many plans also cover prescription drugs, vision, dental, or hearing.
- Premiums, deductibles, and copays vary by plan, with some offering $0 premiums.
Learn more about Medicare Advantage.
Medicare Part D – Prescription Drug Coverage
- Helps pay for brand-name and generic medications.
- Plans are offered by private insurers, with costs and covered drugs varying by plan.
- Important: you cannot enroll in both a Medicare Advantage plan with drug coverage and a separate Part D plan at the same time.
Learn more about Part D drug coverage.
Medicare Supplement (Medigap)
Medigap plans help pay for deductibles, coinsurance, and copayments not covered by Original Medicare. There are 10 standardized Medigap plans available in most states, and all are accepted by any provider that takes Medicare.
Compare Medigap plan benefits.
What Medicare Does Not Cover
- Long-term custodial care
- Most dental, vision, and hearing services
- Cosmetic procedures and alternative medicine
- Comfort items such as private hospital rooms
- Routine foot care
- Care received outside the U.S. (with limited exceptions)
Recent Medicare Changes
- 2020: Medigap Plans F and C (which covered the Part B deductible) are no longer available to those newly eligible after January 1, 2020. If you had Medicare before then, you may still apply if the plans are offered in your area.
- Part D “donut hole” closed: Beneficiaries now pay a maximum of 25% for covered brand-name and generic drugs until reaching the annual out-of-pocket limit ($5,030 in 2025).
Bottom line: Medicare offers broad coverage but does not pay for everything. Understanding what each part covers — and how Medigap can help with the gaps — is the best way to avoid unexpected costs. Compare plans today to find the right fit for your needs.