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The 4 Parts of Medicare
Parts A, B, C, and D explained one at a time, with what each costs in 2026.
Medicare looks complicated because it arrives as an alphabet. It is really a set of parts that each do one job. Here is what each one covers, what you can expect to pay this year, and why it matters.
Hospital Insurance
What it covers
- Inpatient hospital care
- Short-term skilled nursing facility care
- Hospice care
- Some home health care
What you pay in 2026
- Premium: $0 for most people, if you or a spouse worked and paid Medicare taxes for at least 10 years
- Deductible: $1,736 per benefit period
- Days 1–60: $0 coinsurance
- Days 61–90: $434 per day
- Lifetime reserve days: $868 per day
Why it matters: Part A is what stands between you and the cost of a major medical event. A surgery or a long hospital stay is exactly the kind of bill that runs into five figures without it.
Medical Insurance
What it covers
- Doctor visits
- Outpatient services such as lab work and X-rays
- Preventive care, including screenings and vaccines
- Durable medical equipment such as walkers and wheelchairs
What you pay in 2026
- Premium: starts at $202.90 per month, and is higher at higher incomes
- Deductible: $283 per year
- Coinsurance: generally 20 percent of the Medicare-approved amount
Why it matters: Part B is the coverage you actually use most years. Routine visits, tests, and preventive care all run through it.
Medicare Advantage
What it covers
- Everything Parts A and B cover, as required by law
- Usually prescription drug coverage as well
- Often dental, vision, hearing, and fitness benefits
What you pay in 2026
- Premium: many plans are $0 per month, and you still pay your Part B premium
- Out-of-pocket costs: vary by plan, but every plan must set an annual maximum
- Networks: HMO and PPO structures, so covered providers vary by plan
Why it matters: Part C is the private alternative to Original Medicare. It bundles your coverage onto one card and adds benefits Original Medicare never included, in exchange for working within a network.
Prescription Drug Coverage
What it covers
- Prescription medications
- Drugs grouped into tiers, with generics usually costing the least
- Sold as a standalone plan or built into a Medicare Advantage plan
What you pay in 2026
- Premium: varies by plan and ZIP code
- Deductible: up to $615, and some plans set it lower or waive it
- Out-of-pocket cap: $2,100 per year, after which covered drugs cost you $0
- Copays: based on your plan's drug list and the tier each medication falls into
Why it matters: Original Medicare does not cover prescriptions at all. For many people, medications are the single largest recurring health cost, and the annual cap now puts a firm ceiling on it.
All Four Parts at a Glance
| Part | What It Covers | Who Offers It | Includes Drugs? | 2026 Premium |
|---|---|---|---|---|
| Part A | Hospital stays, skilled nursing | Federal government | No | Usually $0 |
| Part B | Doctor visits, outpatient care | Federal government | No | Starts at $202.90 |
| Part C | All of A and B, usually D, plus extras | Private carriers | Usually | Varies, many at $0 |
| Part D | Prescription drugs | Private carriers | Yes | Varies by plan and area |
Figures are the 2026 standard amounts published by the Centers for Medicare & Medicaid Services. Amounts are updated each year and your own costs can differ based on income, plan, and where you live.
Do You Need Every Part?
No. You are not required to enroll in all of them, and stacking coverage you will not use is a common way to overpay.
What you need depends on the doctors you see, the medications you take, and how much month-to-month predictability you want. Someone on no prescriptions has a very different answer than someone on four.
One caution worth knowing early: skipping Part B or Part D when you are first eligible can create a late enrollment penalty that stays on your premium permanently. Skipping on purpose is fine. Skipping by accident is expensive.
A simple way to think about it
- Want basic coverage? Parts A and B may be enough on their own
- Take prescriptions? You need Part D, or a Part C plan that includes it
- Want one plan with extras? Look at Part C
- Want to see any doctor and keep costs predictable? Look at Parts A and B with a Supplement, plus Part D
Keep Learning About Medicare
Medicare TPMO Compliance Statement
Complete Family Protection is not connected with or endorsed by any government entity or the federal Medicare program. Complete Family Protection represents Medicare Advantage HMO, PPO, and PFFS organizations, as well as standalone prescription drug plans that have a Medicare contract. Enrollment depends on the plan's contract renewal. We have access to plan information nationwide and can help you search among many options, but we do not offer every plan available in your area. We search and recommend plans even when we do not directly offer them. Contact a licensed Complete Family Protection agent to find out the number of products available in your specific area. You may also contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.