The four parts, in one paragraph each
Part A is hospital insurance: inpatient stays, skilled nursing after a hospital stay, hospice and some home health care. Most people pay no premium for it because they or a spouse paid Medicare taxes for at least 10 years. You still owe a deductible of $1,736 per benefit period in 2026.
Part B is medical insurance: doctor visits, outpatient care, lab work, preventive screenings, durable medical equipment. Almost everyone pays a monthly premium for it, $202.90 in 2026 for most people, plus a $283 yearly deductible. After that you generally pay 20% of the Medicare-approved amount, with no annual cap.
Part C is Medicare Advantage. It isn’t extra coverage on top of A and B. It is a different way to get them, through a private plan approved by Medicare, usually with a network and often with drug coverage built in.
Part D is prescription drug coverage, sold by private plans either as a stand-alone plan alongside Original Medicare or bundled into a Medicare Advantage plan.
Original Medicare or Medicare Advantage
Every person on Medicare ends up on one of two paths. Original Medicare (Parts A and B from the government, often with a Medigap policy and a Part D plan added) lets you see any doctor in the country who takes Medicare. Medicare Advantage replaces that with a private plan that has a network, a yearly cap on in-network costs, and usually extras like dental or vision.
Neither path is better for everyone. The mistake we see most often is picking on premium alone. A $0 premium plan with your cardiologist out of network is not a deal. Our comparison guide walks through the trade-off.
When to sign up
Your Initial Enrollment Period lasts 7 months: the 3 months before the month you turn 65, your birthday month, and the 3 months after. If you’re already collecting Social Security, you’re usually enrolled in Parts A and B automatically.
The penalty is the part people miss. If you don’t sign up for Part B when you’re first eligible and you don’t have qualifying coverage from current employment, you can owe a late enrollment penalty added to your premium for as long as you have Part B. Still working with employer coverage at 65? Ask HR whether your plan counts before you skip Part B.
What it costs in 2026
| Item | 2026 amount |
|---|---|
| Part A premium | $0 for most people |
| Part A deductible | $1,736 per benefit period |
| Part B standard premium | $202.90 per month |
| Part B deductible | $283 per year |
| Part B coinsurance | Usually 20% after the deductible |
| Part D out-of-pocket cap | $2,100 ($2,400 in 2027) |
Higher earners pay more for Parts B and D through an income-related surcharge called IRMAA. CMS usually announces the next year’s Part B premium in the fall.
- Medicare.gov: Medicare costs
- Medicare.gov: 2026 Medicare costs fact sheet (PDF)
- Medicare.gov: How much does Medicare drug coverage cost?
- Medicare.gov: Joining a plan
This guide is general information, not personal advice. Plan availability, costs and rules vary by state and carrier.
