Medicare has four parts that work together. Here's what each one covers:
Part A — Hospital Insurance. Covers inpatient hospital stays, skilled nursing facility care after a hospital stay, hospice, and some home health care. Most people pay nothing for Part A because they (or their spouse) paid Medicare taxes for 10+ years while working. The Part A inpatient deductible in 2026 is $1,736 per benefit period.
Part B — Medical Insurance. Covers doctor visits, outpatient care, preventive services, durable medical equipment, mental health, and many lab tests. Part B has a monthly premium ($202.90 standard in 2026; higher if your income is above $106k single / $212k joint due to IRMAA) plus an annual deductible ($283 in 2026), then you pay 20% of most services with no out-of-pocket cap.
Part C — Medicare Advantage (MA). A bundle that combines Parts A and B (and usually Part D drug coverage) into a single plan from a private insurance carrier like UnitedHealthcare, Humana, or Aetna. MA plans must cover everything Original Medicare covers but typically use provider networks (HMO/PPO) and often include extras like dental, vision, hearing, fitness, and over-the-counter allowances. You still pay your Part B premium plus any plan-specific premium (often $0).
Part D — Prescription Drug Coverage. Standalone drug plans that pair with Original Medicare or Medigap. Each plan has its own formulary (drug list) and pharmacy network. New for 2026: a $2,000 annual out-of-pocket cap on covered drugs — once you spend $2,000, you pay $0 for the rest of the year.
Medigap (Medicare Supplement) is a fifth option. It pairs with Original Medicare (A+B) to fill the gaps — your 20% coinsurance, the Part B deductible (Plan G+ only), foreign travel emergencies. Medigap is not part of Medicare itself; it's sold by private carriers and standardized by the federal government. It does not include drug coverage — you'd add a Part D plan separately.
What to do next: Most people choose between (Original Medicare + Medigap + Part D) or (Medicare Advantage). [Compare both side by side](/medicare/) or call (866) 534-1886 — a licensed advisor will pull every plan in your ZIP and explain the trade-offs free.