Medicare Basics

There are four parts of Medicare: Part A, Part B, Part C, and Part D.

  • Part A provides inpatient/hospital coverage.
  • Part B provides outpatient/medical coverage.
  • Part C, known as Medicare Advantage Plans, provides all the services included in Medicare Part A and Part B, and includes Prescription Drug coverage (Part D).
  • Part D provides Prescription Drug coverage.

Medicare Part A and Part B:

Unless you choose otherwise, you will have Original Medicare (Part A and Part B), the traditional fee-for-service program offered directly through the federal government. Under Original Medicare, the government pays directly for the health care services you receive. You can see any doctor and hospital that takes Medicare anywhere in the country. Most prescriptions aren’t covered in Original Medicare. You can add drug coverage by joining a Medicare prescription drug plan (Part D).

Medicare Advantage Plans (Part C):

Medicare Part C is the part of Medicare law that allows private health insurance companies to provide Medicare benefits. These Medicare private health plans, such as HMOs and PPOs, contract with the federal government and are known as Medicare Advantage Plans. Remember, you still have Medicare if you enroll in a Medicare Advantage Plan. This means that you must still pay your monthly Part B premium (and your Part A premium if you have one). Each Medicare Advantage Plan must provide all Part A and Part B services covered by Original Medicare, but they can do so with different rules, costs, and restrictions that can affect how and when you receive care. Additionally, they include Prescription Drug coverage. If you choose to receive your Medicare benefits through a Medicare Advantage Plan, you will still get an Original Medicare card, but you will show your Medicare Advantage Plan card when you get services.

Medicare Supplement Plans:

Supplement plans, through a private insurance company, helps fill the cost-sharing gaps in Original Medicare. It helps pay for Medicare deductibles, coinsurances, and copayments. Depending on where you live, you have up to 10 different Medigap plans to choose from: A, B, C, D, F, G, K, L, M, and N. Each type of plan offers a different set of benefits. Premiums vary, depending on the plan you choose and the company you buy it from.

Medicare Prescription Drug Coverage (Part D):

Medicare’s prescription drug benefit (Part D) is the part of Medicare that provides Prescription Drug coverage. Part D is provided only through private insurance companies that have contracts with the federal government—it is never provided directly by the government (unlike Original Medicare). Please visit the Creditable Coverage Notice.