Quick answer. Medicare has hospital coverage (Part A), medical coverage (Part B), private Medicare Advantage plans (Part C), and prescription-drug coverage (Part D). In 2026 the standard Part B premium is $202.90 a month and the Part B deductible is $283. The annual out-of-pocket threshold for covered Part D drugs is $2,100. Your enrollment timing and coverage choice can affect costs and access to providers.
Key takeaways
- Original Medicare consists of Part A and Part B.
- Part D covers prescription drugs through private plans that follow Medicare rules.
- Medicare Advantage is a private-plan alternative that bundles Part A and Part B and usually Part D.
- Most beneficiaries do not pay a Part A premium, but Part A still has deductibles and coinsurance.
- Missing an enrollment period can cause a coverage gap or a penalty in some situations, so verify the rule that applies to you.
The parts of Medicare
| Coverage | What it generally helps cover | How it fits |
|---|---|---|
| Part A | Inpatient hospital care, skilled nursing facility care, hospice and some home health care. | One part of Original Medicare. |
| Part B | Doctors’ services, outpatient care, durable medical equipment and many preventive services. | The other part of Original Medicare. |
| Part C | Medicare Advantage plans provide Part A and Part B benefits and usually Part D through a Medicare-approved private plan. | An alternative way to receive Medicare benefits. |
| Part D | Prescription drugs, including many recommended shots or vaccines. | A separate drug plan with Original Medicare or drug coverage within many Medicare Advantage plans. |
These descriptions follow Medicare.gov’s explanation of the parts of Medicare. Coverage details, provider networks, prior-authorization rules and out-of-pocket costs depend on the option and plan.
2026 cost snapshot
| 2026 item | Amount or rule |
|---|---|
| Standard Part B monthly premium | $202.90 |
| Part B annual deductible | $283 |
| Part A inpatient hospital deductible | $1,736 per benefit period |
| Part D annual out-of-pocket threshold | $2,100 for covered Part D drugs |
CMS published the 2026 Part A and Part B amounts on November 14, 2025. CMS also states that about 99% of beneficiaries do not pay a Part A premium because they have at least 40 quarters of Medicare-covered employment. See the CMS 2026 Part A and Part B fact sheet.
For Part D, CMS’s final 2026 redesign instructions set the annual out-of-pocket threshold at $2,100. The threshold applies to covered Part D drugs; it is not a cap on every health or pharmacy expense. See the final CMS Part D redesign instructions.
When to sign up
Medicare.gov says most people sign up for Part A and Part B when first eligible, usually at age 65. The agency warns that signing up later can create a coverage gap or a penalty, although some people can delay enrollment safely or qualify for a Special Enrollment Period. Use Medicare.gov’s enrollment guide for your situation.
What to compare before choosing coverage
- Whether doctors, hospitals and pharmacies are available under the option or plan.
- Premiums, deductibles, copayments, coinsurance and annual limits.
- Prescription coverage, formulary rules and pharmacy network.
- Whether you also have employer, retiree, Medicaid or other coverage.
- Rules for travel, referrals and prior authorization.
Detailed Medicare guides
- Medicare Parts A, B, C and D explained
- Medicare enrollment periods
- Part B premium and IRMAA brackets
- Medicare Advantage versus Original Medicare
- Medigap plans
- Medicaid and Medicare dual eligibility
Official sources
- Medicare.gov — Parts of Medicare
- CMS — 2026 Medicare Parts A and B premiums and deductibles
- CMS — Final CY 2026 Part D redesign instructions
- Medicare.gov — When to sign up
Source review: Medicare.gov and CMS pages checked July 27, 2026. The Guru Gazette is an independent publisher and is not affiliated with CMS or Medicare. This page provides general information, not medical, insurance or financial advice. Editorial status: This guide has been checked against the cited official sources. Independent subject-matter review has not been completed.
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