Medicare Parts A, B, C, and D

Many healthcare plans available from private insurance carriers combine the major areas of healthcare – Hospital Coverage, Medical Coverage, and Prescription Drug Coverage – all under one policy. However, The Original Medicare system does it differently.

Medicare has three distinct parts of coverage which reflect different areas of care. They are simply known as Part A, Part B, and Part D. (Part D was not a part of the Original Medicare System but was created through legislation, becoming effective in 2006.)1

With Medicare, the distinct major areas of healthcare are covered by the differing Parts. For example, Part D is Prescription Drug Coverage; it is insurance coverage that deals mainly with prescribed pharmaceuticals and some vaccines.2 Part D provides no benefits or coverage related to doctor visits or hospitalization. This may seem unnecessarily complicated, but the various Parts are funded differently from one another under the US Federal budget, thus the separation of Parts.

Here are brief descriptions of what the individual Parts do according to the 2024 Medicare and You Handbook:

Part A (Hospital Insurance) helps cover:

  • Inpatient care in a hospital
  • Skilled nursing facility care
  • Hospice care
  • Home health care. (Page 25)

Part B (Medical Insurance) helps cover medically necessary doctor’s services, outpatient care, home health services, durable medical equipment, mental health services, and other medical services. Part B also covers many preventative services. (Page 29)

Part D (Medicare Drug Coverage) helps pay for prescription drugs you need (Page 79)

What about Part C?

Part C is a label that Medicare uses for Medicare Advantage Plans. This is not really a separate area of coverage; rather, it is a different method of receiving coverage. Here is how the Medicare.gov site puts it:

Medicare health plans provide Part A (Hospital Insurance) and Part B (Medical Insurance) benefits to people with Medicare. These plans are generally offered by private companies that contract with Medicare. They include Medicare Advantage Plans (Part C), Medicare Cost Plans, Demonstrations/Pilots, and Program of All-inclusive Care for the Elderly (PACE).3

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Sources:

1 (April 19, 2024) https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4194919/

2 (April 19, 2024) https://www.cms.gov/files/document/ira-vaccines-article.pdf

3 (April 19, 2024) https://www.medicare.gov/health-drug-plans/health-plans