Part A — Hospital Insurance
Medicare Part A covers: inpatient hospital stays, skilled nursing facility care (after a qualifying hospital stay), hospice care, and some home health care. Most people pay $0 premium for Part A if they or their spouse worked and paid Medicare taxes for at least 40 quarters (10 years). 2026 costs: $1,676 deductible per benefit period; $0/day for days 1–60 in the hospital; $419/day for days 61–90. Part A enrollment is automatic at 65 for most people receiving Social Security.
Part B — Medical Insurance
Medicare Part B covers: doctor visits (primary care and specialists), outpatient procedures, durable medical equipment, lab tests, imaging, preventive services, and some home health care. 2026 standard premium: $174.70/month (higher for high-income enrollees through IRMAA — Income-Related Monthly Adjustment Amount). Annual Part B deductible: $240 in 2026. After the deductible, Medicare pays 80% and you pay 20% of approved costs with no out-of-pocket cap. Part B is optional but recommended — missing your enrollment window creates a permanent 10% per year late penalty.
Part C — Medicare Advantage
Medicare Advantage (Part C) is an alternative to Original Medicare offered through private insurance companies approved by Medicare. Plans must cover everything Original Medicare covers and most add dental, vision, hearing, fitness programs, and prescription drug coverage. Most plans charge $0–$50/month beyond the Part B premium and include an annual out-of-pocket maximum — a significant advantage over Original Medicare which has no cap. The tradeoff: you must use in-network providers (except emergencies) and may need prior authorizations. See Medicare Advantage vs Original Medicare.
Part D — Prescription Drugs
Part D provides prescription drug coverage through standalone plans (if you have Original Medicare) or bundled in Medicare Advantage plans. Compare plans annually at medicare.gov/plan-compare during Open Enrollment (October 15 – December 7). 2026 key provision: the IRA-mandated $2,000 annual out-of-pocket cap on Part D costs continues — no beneficiary pays more than $2,000/year in Part D out-of-pocket costs. Low-income beneficiaries can apply for Extra Help, which nearly eliminates Part D costs. See Extra Help for Prescription Costs.
Medigap — Supplemental Insurance
Medigap (Medicare Supplement Insurance) is sold by private companies to cover costs Original Medicare doesn't — particularly the 20% Part B coinsurance and Part A deductible. Medigap policies are standardized by letter (Plan G, Plan N, etc.) — the same letter provides identical benefits regardless of which company sells it. Premium pricing varies by company, so comparison shopping matters. Medigap only works with Original Medicare, not with Medicare Advantage.
2026 Medicare Costs at a Glance
| Part | Premium | Deductible | Key Cost-Sharing |
|---|---|---|---|
| Part A | $0 for most | $1,676/benefit period | $0/day days 1–60; $419/day days 61–90 |
| Part B | $174.70/month | $240/year | 20% of approved costs (no OOP cap) |
| Part D | Varies (~$35–$50 avg) | Up to $590 | Copays vary; $2,000 annual OOP cap |
What Medicare Doesn't Cover
Original Medicare does not cover: routine dental care, routine vision exams and eyeglasses, routine hearing exams and hearing aids, custodial (non-skilled) nursing home care, or most care outside the United States. These are significant gaps — particularly dental, vision, and hearing for older adults. Low-income Medicare enrollees can check Medicaid's Medicare Savings Programs for help with premiums; others may find coverage through Medicare Advantage plans that include these extras.