What Is Medicare, Really?
Medicare is the federal health insurance program in the United States, mainly for people age 65 and older (it also covers some younger people with certain disabilities or health conditions). It's made up of several "parts," each covering a different type of care. Understanding the parts is the key to understanding Medicare.
A Key Term
"Original Medicare" = Part A + Part B
When people say "Original Medicare," they mean the traditional program run directly by the federal government — Part A and Part B together. From there, most people also choose either a Medicare Advantage plan (Part C) as a replacement for Original Medicare, or they stick with Original Medicare and add a standalone Part D drug plan and, often, a Medigap policy.
The Building Blocks
The Parts of Medicare, One at a Time
Part A
Hospital Insurance
Helps pay for inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people get Part A premium-free.
Part B
Medical Insurance
Helps pay for doctor visits, outpatient care, preventive services, durable medical equipment, and other medical services. Part B has a monthly premium.
Part C
Medicare Advantage
An alternative way to get your Part A and Part B benefits (and usually Part D) through a private insurance company approved by Medicare, often bundled with extra benefits.
Part D
Prescription Drug Coverage
Helps pay for prescription medications, offered through private insurers. It can be added to Original Medicare or included in many Medicare Advantage plans.
Medigap
Medicare Supplement Insurance
An optional policy sold by private insurers that helps fill the "gaps" in Original Medicare — like deductibles, copays, and coinsurance. It only works alongside Original Medicare, not Medicare Advantage.