Parts of Medicare

Medicare benefits come in four categories - A, B, C, and D. Here's a breakdown of each part and its function, what it costs, and what it covers.

  • Medicare Part A - Hospital and other facility care (Original Medicare)
  • Medicare Part B - Doctors, outpatient hospital, medical equipment, therapy (Original Medicare)
  • Medicare Part C - Medicare Advantage, which is Original Medicare plus additional coverage - provided by health insurance companies
  • Medicare Part D - Medicare Part D prescription drug coverage provided by health insurance companies

Medicare Part C - Medicare Advantage

Medicare Part C allows insurance companies to provide health insurance plans to Medicare beneficiaries. It's called Medicare Advantage because it's Original Medicare plus additional coverage.

Formerly known as Medicare+Choice plans, these health plans provide an alternative to Original Medicare. Medicare Advantage plans are permitted to offer more benefits than Original Medicare - like dental and vision care. They may also include prescription drug coverage that is the same or greater than Medicare's standard requirement. Most Medicare Advantage plans feature prescription drug benefits, fixed costs, limits on out-of-pocket expenses, and worldwide coverage for emergency and urgent care.

With a Medicare Advantage plan:

  • You're still in the Medicare program
  • You keep all your Medicare rights and protections
  • You generally receive more benefits in addition to your basic Medicare coverage

There are different Medicare plans for different needs so you can tailor your Medicare plans to your specific needs, including:

  • Basic coverage meeting the federal government's minimum requirements
  • Broad coverage with fixed costs
  • HMOs, PPOs, and Private-Fee-for-Service (PFFS) plans, depending on your needs
  • Extensive coverage including prescription drugs
  • Medical savings accounts

For more details on the difference between Medicare Advantage and Original Medicare, see Ways to receive Medicare Benefits.

Watch Healthcare Video: What is Medicare?