Medicare has several different parts, and each one helps cover different healthcare needs. Here's a simple way to understand how they work together.
Part A: Hospital Insurance
Medicare Part A generally helps cover inpatient hospital care, skilled nursing facility care, hospice care, and certain home health services.
Part B: Medical Insurance
Medicare Part B generally helps cover doctor visits, outpatient care, preventive services, durable medical equipment, and other medically necessary services. Together, Parts A and B are known as Original Medicare.
Part C: Medicare Advantage
Medicare Advantage, also called Part C, is another way to receive your Medicare Part A and Part B benefits through a Medicare-approved private insurance company. Plans must cover the services covered by Original Medicare, and most Medicare Advantage plans include Part D prescription drug coverage. Some plans may offer additional benefits.
Part D: Prescription Drug Coverage
Medicare Part D helps cover prescription medications. Coverage is offered through private insurance companies that contract with Medicare. Each plan has its own formulary, or list of covered medications, as well as its own costs and coverage rules.
Where does Medigap fit in?
Medicare Supplement Insurance, commonly called Medigap, isn't another “part” of Medicare. It's supplemental insurance designed to work with Original Medicare and can help pay certain out-of-pocket costs. Medigap policies don't work with Medicare Advantage plans.
Putting the pieces together
Understanding Parts A, B, C, and D can make Medicare feel much less complicated. The next step is understanding how the different coverage options may fit your healthcare needs and circumstances.