Medicare 101: Parts A, B, C & D Simply Explained

If you are turning 65 or approaching Medicare eligibility, the alphabet soup of Medicare parts can feel completely overwhelming. Choosing the wrong plan can cost you thousands of dollars in unnecessary out-of-pocket expenses. Here is a plain-English breakdown of what each part covers and what you will need.

Medicare Part A — Hospital Insurance

Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care. Most people qualify for Part A at no premium cost if they or their spouse paid Medicare taxes for at least 10 years while working.

Important to know: Part A has a deductible of around $1,600 per hospital stay, and coverage becomes limited after 60 days in the hospital.

Medicare Part B — Medical Insurance

Part B covers doctor visits, outpatient care, preventive services, lab tests, and durable medical equipment. Unlike Part A, Part B requires a monthly premium — around $174 per month in 2024 for most people, though it can be higher based on your income.

Part B also has an annual deductible and typically covers 80% of approved costs — leaving you responsible for the remaining 20% with no out-of-pocket maximum.

Medicare Part C — Medicare Advantage

Medicare Advantage plans are offered by private insurance companies approved by Medicare. They bundle Part A and Part B coverage together and often include additional benefits like dental, vision, hearing, and prescription drug coverage.

Many Medicare Advantage plans have $0 premiums, making them very attractive. However, they typically require you to use a network of doctors and get referrals for specialists. They work best if you want bundled coverage and are comfortable staying within a provider network.

Medicare Part D — Prescription Drug Coverage

Part D plans cover prescription medications and are sold by private insurers. If you have original Medicare (Parts A and B), you add a standalone Part D plan. If you have a Medicare Advantage plan, drug coverage is usually included.

Each Part D plan has its own formulary — the list of covered drugs — so it is critical to compare plans based on the specific medications you take.

Medicare Supplement (Medigap) Plans

If you choose original Medicare rather than a Medicare Advantage plan, a Medigap supplement policy fills in the gaps — covering your 20% coinsurance, deductibles, and excess charges. These plans provide predictable costs and the freedom to see any Medicare-accepting doctor in the country.

How We Help

At Brsan Financial, we compare every Medicare plan available in your area at absolutely no cost to you. We walk you through your options side by side, factoring in your doctors, your medications, and your budget — so you make a confident, informed decision. Medicare enrollment has strict deadlines, so do not wait too long to get guidance.