Medicare parts A, B, C and D explained

Part A — Hospital insurance

Covers inpatient hospital stays, skilled nursing facility care after a hospital stay, hospice, and some home health care. Cost: Most people pay no premium for Part A if they (or their spouse) worked and paid Medicare taxes for at least 10 years. There is a deductible per benefit period ($1,676 in 2026) and co-insurance for longer stays.

Part B — Medical insurance

Covers doctor visits, outpatient care, preventive services, medical equipment, and some home health care. Cost: Standard premium $185/month in 2026 (higher for higher incomes via IRMAA). Annual deductible: $257. After the deductible, you pay 20% of the Medicare-approved amount for most services.

Part C — Medicare Advantage

An alternative way to get your Medicare benefits through a private insurer. Plans must cover at least what Parts A and B cover, and most include Part D drug coverage. Plans often add dental, vision, and hearing coverage. Costs vary widely by plan and location. You still pay the Part B premium.

Part D — Prescription drug coverage

Covers prescription drugs through private plans. You choose a plan based on the drugs you take. There is a monthly premium (varies by plan), an annual deductible (up to $590 in 2026), and co-pays or co-insurance for each prescription. Starting 2025, out-of-pocket costs for covered drugs are capped at $2,000/year.

When to sign up — avoiding the late penalty

Your Initial Enrollment Period is the 7-month window starting 3 months before the month you turn 65. Signing up late for Part B or Part D — without creditable employer coverage — results in a permanent premium penalty (10% per year late for Part B, 1% per month for Part D).