What is Medicare?

Created in 1965, Medicare started with just two parts—Part A and Part B. Later on, additional parts—Part C and Part D—were added as the needs of Medicare beneficiaries changed.

It's important to understand that Original Medicare (Part A and Part B) does not cover all of your medical expenses. Learn about other options that are available and why they may be right for you.

Part A

Hospital insurance for inpatient stays and more:

• Usually there is no monthly premium for Part A coverage.
• You pay a Part A deductible and coinsurance, which are out-of-pocket expenses, when you receive care. You are responsible for paying these expenses—unless you have a separate health insurance plan to cover them.

Part B

Medicare insurance—for doctor services and more:

• Part B is optional coverage.
• You pay a monthly Part B premium.
• For most services, you pay a calendar year Part B deductible and coinsurance—unless you have insurance for those expenses.

Part D

Medicare-approved prescription drug coverage:

• Part D is sold only through private organizations, like insurers, are contracted with Medicare.
• Coverage can be purchased either as a "stand-alone" prescription drug plan (PDP) or may be included with a Part C Medicare Advantage plan. Plans that combine medical coverage and prescription drug coverage are called Medicare Advantage Prescription Drug (MA-PD) plans.

Part C

Medicare Advantage:

• Part C Medicare Advantage (MA) plans replace Original Medicare with coverage offered by private organizations, like insurers, that are contracted with Medicare.
• These plans offer everything covered by Original Medicare Part A and Part B, plus they often include prescription drug coverage and coverage of certain services not paid by Original Medicare.
• Premiums and deductibles vary by plan.