Medicare Basics: The 3 Parts Explained (A, B, and D)

If you’re turning 65 (or helping a loved one), Medicare can feel confusing at first. The good news: the foundation is simple. Medicare has three core parts—A, B, and D—and once you understand what each one does, the rest starts to make sense.

Part A: Hospital Insurance

Part A helps cover inpatient hospital stays, skilled nursing facility care (after a qualifying hospital stay), hospice care, and some home health care. Many people pay $0 premium for Part A if they (or a spouse) worked and paid Medicare taxes long enough.

Part B: Medical Insurance

Part B helps cover doctor visits, outpatient care, preventive services, lab work, and many medical supplies. Part B usually has a monthly premium. It also has cost-sharing (like deductibles and coinsurance), which is why many people look at additional coverage options.

Part D: Prescription Drug Coverage

Part D helps cover prescription medications. It’s offered through private insurance companies approved by Medicare. Plans vary by monthly premium, pharmacy network, and which medications they cover (their formulary). Choosing the right Part D plan can save you a lot over the year.

What’s next?

• Decide how you want to receive your coverage (Original Medicare vs. Medicare Advantage).

• Make sure your doctors and prescriptions are covered the way you expect.

• Review enrollment timing so you avoid late penalties.

If you’d like, you can schedule a free consultation and I’ll help you compare options based on your doctors, prescriptions, and budget.