Medicare is composed of five parts, and each part covers something different.¹ This means you can choose the coverage you want and avoid paying for anything you already have or don’t need. There are two options when purchasing Medicare: a la carte or bundled. For an in-depth guide, our Understanding the Different Medicare Parts is a great resource. But in the meantime, here’s a brief overview of each part:

Original Medicare

Original Medicare is the plan first created by the government. It's made up of Part A and Part B. You can add additional plans to Original Medicare, a la carte style, based on your healthcare needs.

• Part A. Part A helps cover expenses associated with hospital care, including inpatient stays, skilled nursing facility care, and some home health and hospice care.
• Part B. Part B helps cover doctor’s visits, outpatient services, medical supplies and preventive services. Everyone pays a monthly premium for Part B.

A la Carte Plans to Add to Original Medicare

• Part D. Part D helps cover prescription drugs and many recommended shots and vaccines. In order to sign up, you must be enrolled in either Part A and/or Part B of Original Medicare.
• Medicare Supplement.² Often referred to as Med Supp or Medigap, Medical Supplement plans are sold by private insurance companies and help cover out-of-pocket costs that Original Medicare doesn’t. Examples include copayments, deductibles and coinsurance. Medigap is only available to people who are covered by Original Medicare.

Medicare Advantage

Part C. There is an all-in-one bundled plan alternative to Medicare Supplements that includes all parts along with some extra benefits. Also called Medicare Advantage, Part C is offered through private insurance companies. 

Your out-of-pocket costs may also be lower but your choices of doctors and network are more restricted than Original Medicare. It’s important to note that if your Medicare Advantage Plan does not offer a prescription drug plan, you may not be eligible to enroll in Medicare Part D. It's best to connect with your plan provider before making a decision.

SOURCES

1. “Medicare & You Handbook.” Medicare, www.medicare.gov/Pubs/pdf/10050-medicare-and-you.pdf. Accessed 7 December 2023.
2. “Get Medigap Basics” Medicare, www.medicare.gov/health-drug-plans/medigap/basics. Accessed 7 December 2023.