Medicare Parts A, B, C & D Explained (2026)

Reviewed against Medicare.gov and CMS 2026 data · Last reviewed: June 2026

Medicare comes in four parts — A, B, C, and D — and understanding what each one does is the first step to choosing coverage. In short: Part A is hospital insurance, Part B is medical insurance, Part C (Medicare Advantage) bundles them through a private plan, and Part D covers prescription drugs. This 2026 guide explains each part in plain language, shows the current costs, and maps how the pieces fit into the two main ways to get Medicare.

The four parts of Medicare at a glance

Part A: hospital insurance

Part A covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health. Most people pay no premium because they (or a spouse) paid Medicare taxes for at least 10 years. You do pay a hospital deductible — $1,736 per benefit period in 2026 — and coinsurance for long stays. Part A is the foundation everyone starts with.

Part B: medical insurance

Part B covers doctor visits, outpatient care, preventive screenings, lab tests, and durable medical equipment. The 2026 standard premium is $202.90 a month (higher with IRMAA), with a $283 annual deductible, after which you typically pay 20% coinsurance. Part B is optional but carries a lifelong late-enrollment penalty if you skip it without other coverage.

Part C: Medicare Advantage

Part C, or Medicare Advantage, is an all-in-one alternative to Original Medicare offered by private insurers. It bundles Part A and Part B and usually includes Part D drug coverage, often adding dental, vision, and hearing. You still pay your Part B premium, plus any plan premium. Advantage plans use networks and may require referrals — the trade-off for lower premiums and extra benefits.

Part D: prescription drug coverage

Part D covers prescription drugs through private plans. You can add a stand-alone Part D plan to Original Medicare, or get drug coverage built into most Medicare Advantage plans. Costs vary by plan and by the drugs you take; higher earners pay a Part D IRMAA surcharge, and there’s a late-enrollment penalty if you go without creditable drug coverage.

How the parts fit together

There are two main ways to assemble your coverage:

• Original Medicare path: Part A + Part B, usually plus a Part D drug plan and a Medigap policy to limit out-of-pocket costs.
• Medicare Advantage path: a single Part C plan that bundles A, B, and usually D, with a yearly out-of-pocket cap and often extra benefits.

You can’t use Medigap with Advantage — the two paths are alternatives, not add-ons to each other.

Common mistakes to avoid

• Thinking Part A covers everything — it’s hospital only; you need B for doctors.
• Skipping Part D and owing a lifelong drug penalty.
• Assuming “$0 premium” means free — you still pay Part B.
• Mixing up the two paths — Medigap works only with Original Medicare.

Related resources

• Medicare enrollment 2026 — when to sign up for each part.
• Medicare Advantage vs Original Medicare 2026
• Medigap plans 2026
• Medicare Part B premium & IRMAA brackets 2026

Frequently asked questions

What are the four parts of Medicare?
Part A is hospital insurance, Part B is medical insurance, Part C (Medicare Advantage) is a private all-in-one alternative, and Part D covers prescription drugs.

How much does Medicare Part A cost in 2026?
Part A is premium-free for most people who paid Medicare taxes for at least 10 years. You pay a hospital deductible of $1,736 per benefit period in 2026, plus coinsurance for longer stays.

How much is Medicare Part B in 2026?
The standard Part B premium is $202.90 a month, with a $283 annual deductible, after which you typically pay 20% coinsurance. Higher earners pay more through IRMAA.

What is the difference between Part C and Part D?
Part C (Medicare Advantage) is a private plan that bundles Parts A and B and usually includes drug coverage and extras. Part D is stand-alone prescription drug coverage you add to Original Medicare.

Do I need all four parts of Medicare?
Most people have Part A and Part B, then either add Part D plus Medigap (Original Medicare path) or choose a Part C Advantage plan that bundles everything. You don’t use Part C and Medigap together.

Is Part A really free?
For most people, yes — there’s no premium if you or a spouse paid Medicare taxes for 10+ years. You still owe the hospital deductible and coinsurance. A few people who don’t qualify must pay a Part A premium.

Which Medicare parts cover prescriptions?
Part D covers prescription drugs, either as a stand-alone plan with Original Medicare or built into most Medicare Advantage (Part C) plans. Parts A and B generally don’t cover outpatient drugs.

The Guru Gazette is an independent publisher and is not affiliated with Medicare or CMS. This is general information, not insurance advice — confirm current costs and coverage at Medicare.gov. Last reviewed: June 2026.

Sources

• Medicare.gov — Parts of Medicare: https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/parts-of-medicare
• CMS — 2026 Medicare Parts A & B Premiums and Deductibles: https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
• Medicare.gov — Medicare costs: https://www.medicare.gov/basics/costs/medicare-costs
• Medicare.gov — Drug coverage (Part D): https://www.medicare.gov/drug-coverage-part-d
• CMS — Medicare & You 2026 handbook: https://www.medicare.gov/medicare-and-you

People Also Ask

What is the Medicare Part A deductible in 2026?

The Part A hospital deductible is $1,736 per benefit period in 2026, as shown above. It applies each time you start a new benefit period rather than once a year, and longer inpatient stays add coinsurance. Most people still pay no Part A premium because they or a spouse paid Medicare taxes for at least 10 years.

Do you have to pay the Part B deductible every year?

Yes. Part B has an annual deductible of $283 in 2026, and you pay covered costs up to that amount before Medicare begins paying its share. After the deductible, you typically pay 20% coinsurance for most Part B services. The deductible resets at the start of each calendar year.

What is Part D IRMAA?

Part D IRMAA is an income-related surcharge that higher earners pay on top of their drug plan premium. It is based on your income from the tax return two years earlier and rises through income tiers. The surcharge is separate from, and added to, whatever your private Part D or Advantage plan already charges.

Does Part B cover prescription drugs?

Part B covers only a narrow set of drugs, mainly those administered in a clinical setting such as certain injections, infusions, and some vaccines. Most everyday prescriptions you fill at a pharmacy are covered under Part D instead, either through a stand-alone plan or a Medicare Advantage plan that includes drug coverage.

Can you add Medigap to Original Medicare?

Yes. If you choose Original Medicare (Parts A and B), you can add a Medigap supplement policy to help pay deductibles and the 20% coinsurance, plus a separate Part D plan for drugs. You cannot use Medigap with a Medicare Advantage plan, since Advantage is an alternative way to receive Parts A and B.

Related guides

• Medicare 2026 Guide
• Medicare vs Medicaid: What’s the Difference? (2026)
• Medicare Enrollment 2026: IEP, GEP, SEP & How to Sign Up
• Medigap (Medicare Supplement) Plans 2026: Plan G vs N & How to Choose
• Medicaid 2026 Guide
• Social Security 2026 Guide

Reviewed by the Guru Gazette Editorial Review Team · Last reviewed June 2026. Figures are verified against official government sources; see our Fact-Checking Policy.