If you turn 65 soon, you’ve probably started hearing about Medicare. It can initially feel overwhelming, but we’re here to make it easy. This guide will walk you through the four parts of Medicare—what they cover, how they work, and how to get started.
The 4 Parts of Medicare
Medicare is divided into four parts: A, B, C, and D. Each part covers different kinds of care. Here’s how they work:
Part A + Part B = Original Medicare
Original Medicare consists of Part A (Hospital Insurance) and Part B (Medical Insurance). These two parts are the foundation of Medicare and are managed by the federal government.
Part A – Hospital Insurance
Part A helps pay for care when you’re admitted to a hospital. It also covers:
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- Skilled nursing facility care (short-term rehab after a hospital stay)
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- Hospice care (end-of-life support)
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- Some home health care (if your doctor says you need it)
Most people don’t pay a premium for Part A if they or their spouse worked and paid Medicare taxes for at least 10 years.
Part B – Medical Insurance
Part B helps cover services you receive outside of a hospital, like:
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- Doctor visits
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- Lab tests and imaging (like blood work and X-rays)
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- Outpatient procedures (like same-day surgeries)
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- Preventive care (flu shots, screenings, and annual wellness visits)
You’ll pay a monthly premium for Part B. 2025, the standard premium for most people, around $174.70, but it may be higher based on your income. Check out the income table here that details the income levels where you must pay more for Part B each month.
How to Sign Up for Part A and Part B
You can sign up for Medicare A and B through the Social Security Administration. Here’s how:
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- If you’re already receiving Social Security or Railroad Retirement benefits, you’ll automatically be enrolled in Parts A and B about 3 months before your 65th birthday.
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- If you’re not receiving Social Security, sign up at www.ssa.gov/medicare, by phone at 1-800-772-1213, or at your local Social Security office.
Your Initial Enrollment Period lasts 7 months, starting 3 months before the month you turn 65, including your birthday month, and ending 3 months after.
Additional Options You Can Purchase
Once you have Original Medicare (Parts A & B), you can add more coverage depending on your needs and budget.
Part C – Medicare Advantage Plans
Private insurance companies offer Part C plans and combine Parts A and B into one plan. Many also include:
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- Part D (drug coverage)
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- Extra benefits like dental, vision, hearing, and gym memberships
Medicare Advantage plans are required to cover everything that Original Medicare does, but they often offer lower out-of-pocket costs and extra benefits. In exchange for a (typically) low monthly premium, you’re agreeing to use the plan’s network of providers and follow its specific rules and guidelines.
Important: You must still pay your Part B premium if you enroll in a Part C plan.
Part D – Prescription Drug Plans
Part D helps pay for prescription medications.
You can get Part D in one of two ways:
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- As a standalone plan (added to Original Medicare)
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- Included in a Medicare Advantage plan (Part C)
Standalone plans vary in cost and drug coverage, so it’s wise to review your medications annually to ensure your plan meets your needs.
Medicare Advantage plans often include prescription drug coverage, but it’s still important to check that your specific medications are covered by the plan before enrolling.
Medicare Supplement Plans (Medigap)
If you choose Original Medicare (Parts A and B), you can buy a Medicare Supplement plan also called “Medigap.”
These plans help cover costs that Original Medicare doesn’t pay, like:
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- Deductibles
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- Coinsurance
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- Copayments
There are different types of Medigap plans (Plan G, Plan N, etc.), and each offers a different level of coverage, but they all give you more predictable healthcare costs.
Many people pair a Medicare Supplement plan with a PDP plan.