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

Part A (Hospital Insurance) covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.

• 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

Part B (Medical Insurance) covers certain doctors' services, outpatient care, medical supplies and preventative services.

• 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

Also called Medicare Part D plans or PDPs, these plans help people with Medicare more easily afford prescription drugs. Only offered by private insurance companies, PDPs can be combined with Original Medicare or a Medicare Supplement plan to reduce your cost for medications.

• 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

Also known as Medicare Part C, these plans offer all the benefits of Original Medicare and more! Most Medicare Advantage plans include medical and prescription coverage as well as additional benefits like dental, vision and hearing.

• 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.