Free Guide · 2026 · Updated August 2026

Medicare Parts A, B, C, and D Explained

Medicare comes in four parts. Here is what each one covers and what it costs in 2026.

Part A — Hospital insurance

Covers inpatient hospital stays, skilled nursing, hospice, and some home health care. Free for most people (40+ work quarters). 2026 deductible: $1,736 per benefit period.

Part B — Medical insurance

Covers doctor visits, outpatient care, preventive services, and durable medical equipment. 2026 premium: $202.90/month standard (more with IRMAA); deductible $283.

Part C — Medicare Advantage

A private-plan alternative that bundles Part A, Part B, and usually Part D into one plan, often with extras like dental or vision. You still pay your Part B premium. Compare it with Original Medicare in our Advantage vs Original guide.

Part D — Prescription drug coverage

Covers prescription medications through private plans. 2026 national base premium: $38.99. New for 2026: a $2,100 annual out-of-pocket cap on covered drugs.

👔 Are you a Medicare agent?

These free tools handle one client at a time. Our Excel + Google Sheets toolkits run your whole book — client CRM, 60-day renewal radar, IRMAA appeals, commission & chargeback tracking, and compliance logs. Built for agents, instant download, no monthly fee.

New here? Start for $7.49 →

…or browse all the agent toolkits on Etsy →

Related free tools

2026 IRMAA Calculator
Enter income → your exact Part B & D surcharge.
Sign-Up Window Calculator
Turning 65? See your 7-month window.
Enrollment Period Finder
Find the exact window you can change plans.

Frequently asked questions

What does Medicare Part A cover?

Inpatient hospital care, skilled nursing facility care, hospice, and some home health care. Most people pay no premium for Part A.

What is the difference between Part C and Original Medicare?

Part C (Medicare Advantage) is a private bundled plan that replaces how you get Parts A and B, often adding drug coverage and extras. Original Medicare is the government program (Parts A and B) you can pair with a standalone Part D plan.

Do I need all four parts?

No. Most people have Part A and Part B, then add either a Part D drug plan (with Original Medicare) or a Medicare Advantage plan that includes drug coverage.

Official sources

Figures on this page are verified against U.S. government primary sources: