Medicare Part A, B, C, D: Key Differences (2026)
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Quick note: Finance24Me is an independent information site. We do not sell insurance. For personalized Medicare guidance, contact 1-800-MEDICARE. This article is educational only.
Medicare’s “alphabet soup” of Parts confuses many beneficiaries. Each part covers different services and has different costs. Together, they’re designed to provide comprehensive health coverage for people 65+ and certain younger beneficiaries.
Quick Reference
| Part | Common Name | What It Covers |
|---|---|---|
| Part A | Hospital Insurance | Inpatient care, skilled nursing, hospice |
| Part B | Medical Insurance | Doctor visits, outpatient, preventive |
| Part C | Medicare Advantage | Alternative bundled coverage |
| Part D | Prescription Drug | Outpatient prescriptions |
Part A: Hospital Insurance
Covers:
- Inpatient hospital stays
- Skilled nursing facility care (limited)
- Hospice care
- Some home health care
- Inpatient mental health care
Doesn’t cover:
- Outpatient services
- Long-term custodial care (nursing home for non-medical reasons)
- Most prescription drugs
- Non-hospital outpatient mental health
2026 costs:
- Premium: $0 for most people (40+ work credits)
- Deductible: $1,676 per benefit period
- Coinsurance: $0 for days 1–60; $419/day for days 61–90; $838/day for days 91+ (using lifetime reserve)
Benefit period: Begins when you’re admitted as inpatient and ends when you’ve been out 60 consecutive days. New benefit period = new deductible.
Part B: Medical Insurance
Covers:
- Doctor visits
- Outpatient hospital services
- Preventive services (annual wellness, screenings, vaccines)
- Durable medical equipment (wheelchairs, oxygen, etc.)
- Mental health (outpatient)
- Some home health services
- Lab tests
- Ambulance services
- Limited prescription drugs (typically those administered in office)
Doesn’t cover:
- Most prescription drugs
- Long-term care
- Most dental, vision, hearing
- Care outside the US
2026 costs:
- Standard premium: $185.00/month
- Higher-income premium (IRMAA): up to $629/month
- Deductible: $257/year
- Coinsurance: 20% of Medicare-approved amount
Most preventive services covered at 100% (no deductible or coinsurance).
Part C: Medicare Advantage
What it is: Alternative to Original Medicare. Private plans approved by Medicare that cover everything Parts A and B cover, often with extras.
Often includes:
- Prescription drug coverage (built-in Part D)
- Vision, dental, hearing
- Gym memberships (SilverSneakers, Renew Active)
- Transportation to medical appointments
- Over-the-counter benefit
- Telehealth
Trade-offs:
- Network restrictions (HMO/PPO style)
- Often lower premiums (sometimes $0 above Part B)
- Out-of-pocket maximum (Original Medicare has none)
- Plans change annually
2026 costs:
- Plan premium: $0–$200+/month
- Plus Part B premium: $185.00/month (always required)
- Out-of-pocket max: ~$8,850 in-network (2026 federal limit)
See Medicare Advantage vs Original Medicare.
Part D: Prescription Drug
Covers: Outpatient prescription drugs.
Sold by: Private insurers approved by Medicare.
Plans differ on:
- Premium
- Deductible
- Drug formulary (which drugs are covered)
- Tier pricing
- Pharmacy network
2026 costs:
- Premium: varies, average ~$45/month
- Deductible: up to $590
- Out-of-pocket max: $2,100 (major 2025+ improvement, eliminating “donut hole”)
The 2026 cap on out-of-pocket drug costs is a major improvement over earlier years when costs could be unlimited.
See Medicare Part D Prescription Drug Coverage Guide.
How They Fit Together
Two main paths:
Path A: Original Medicare Path
Part A + Part B + (Optional Medigap) + (Optional Part D)
- Maximum provider flexibility
- Higher premium total
- No out-of-pocket cap unless Medigap
Path B: Medicare Advantage Path
Part C (which includes A and B benefits) + (Often included Part D)
- Lower premium often
- Network restrictions
- Out-of-pocket cap built in
- Bundled extras
You can’t combine Original Medicare with Medicare Advantage — pick one path.
Total Cost Estimates: 2026
Path A (Original + Medigap G + Part D)
| Item | Monthly |
|---|---|
| Part A | $0 |
| Part B | $185 |
| Medigap Plan G | $150–$300 |
| Part D | $30–$80 |
| Total | $365–$565+ |
Path B (Medicare Advantage with Drug Coverage)
| Item | Monthly |
|---|---|
| Part A | $0 |
| Part B | $185 |
| MA plan (often $0 added) | $0–$200 |
| Total | $185–$385 |
(Plus copays as you use services in either path.)
What Each Part Doesn’t Cover (Together)
Even with all four parts, Medicare doesn’t cover:
- Long-term custodial care
- Most dental (Part C may include)
- Most vision (Part C may include)
- Most hearing aids (Part C may include)
- Cosmetic surgery
- Most care outside the US
- Acupuncture (limited)
Plan accordingly with separate dental/vision insurance, long-term care planning.
Helpful Resources
📖 Medicare.gov Part A — official Part A coverage details.
📖 Medicare.gov Part B — official Part B coverage.
📖 Medicare.gov Plan Compare — find Part C and D plans.
📖 1-800-MEDICARE — 24/7 official help.
Common Mistakes
- Confusing Part C and Part D — Part C is bundled coverage, Part D is just drugs
- Skipping Part D when not on employer drug coverage (lifetime penalty)
- Not enrolling in Part B when employer coverage ends
- Assuming Original Medicare covers everything — it doesn’t (no out-of-pocket max)
- Not reviewing plans annually during Open Enrollment
FAQ — Medicare Parts Explained
Q: What’s the difference between Part C and Medigap? A: Part C (Medicare Advantage) is an alternative to Original Medicare. Medigap supplements Original Medicare. You can have one or the other, not both.
Q: Is Part A really free? A: Premium is $0 for most people who worked 40+ quarters (10 years). Deductibles and coinsurance still apply when used.
Q: Do I need both Parts A and B? A: Most beneficiaries take both at 65 unless still on employer coverage. Skipping Part B when not employer-covered means lifetime penalty when you do enroll.
Q: Can I skip Part D if I don’t take medications? A: You can, but you’ll face lifetime penalty if you later enroll. Many take a low-cost Part D plan as insurance against future drug needs.
Q: Does Medicare Advantage replace Original Medicare? A: Yes — Medicare Advantage provides Parts A and B benefits through a private insurer. You’re still in Medicare, just receiving it through the MA plan.
Related Reading on Finance24Me
- Medicare Explained: Complete 2026 Beginner’s Guide
- Medicare Advantage vs Original Medicare
- Medicare Supplement (Medigap) Plans Explained
- Medicare Part D Prescription Drug Coverage Guide
- When to Enroll in Medicare
Bottom Line
Part A covers hospital. Part B covers doctors and outpatient. Part C (Medicare Advantage) is bundled alternative. Part D covers prescription drugs. Most beneficiaries combine A + B + Medigap + D (Original path) or take a single Medicare Advantage plan. Total cost typically $185–$565/month depending on path and supplemental coverage.
Disclaimer: This article is for informational and educational purposes only. It is not insurance, medical, or financial advice, and Finance24Me does not provide insurance or medical services. For Medicare decisions, contact 1-800-MEDICARE or Medicare.gov.
By Finance24Me Editorial · Updated May 9, 2026
- medicare parts
- Part A
- Part B
- Part C
- Part D