Medicare Part A, B, C, and D: What you need to know

Lake Life Insurance
Oct 21
3 min read

Medicare Parts A, B, C, and D are the four distinct types of coverage available to eligible individuals. Each Medicare part covers different healthcare-related costs.

While Medicare Part A and Medicare Part B are administered by the Centers for Medicare & Medicaid Services (CMS), Medicare Part C and Medicare Part D are managed by private insurance companies.

Medicare is similar to the health insurance coverage you’ve probably had with an employer or an individual policy.

It can cover doctor visits, inpatient and outpatient hospital care, prescription drugs, and lab tests.
Depending on the plan you choose, your Medicare plan can also cover dental and vision, if you like.

Here’s a brief overview of each of the parts of Medicare:

What is Medicare Part A?

Medicare Part A (also known as hospital insurance) is a basic insurance plan that covers medical services related to inpatient hospitalization and skilled nursing care.

It is offered at low or no cost to Americans who are 65 years old and have contributed toward Social Security, as well as other qualified individuals.

What Medicare Part A covers:

Inpatient care in a hospital
Skilled nursing facility care
Inpatient care in a skilled nursing facility
Hospice care
Home health care

How much does Medicare Part A Cost in 2025?¹

If you or your spouse have worked at least 10 years in any job where you paid Social Security taxes, you do not have to pay a premium for Part A.

Premium: $0 per month
Deductible: $1,676 for each benefit period

The 2025 Medicare Part A premium for those who do not qualify for $0 premiums is either $285 or $518 per month, depending on how long you worked and paid Medicare taxes.

Enrollment Period for Medicare Part A

You’re eligible to enroll in Medicare Part A during your Initial Enrollment Period (IEP), which is the seven-month period around your 65th birthday.

Your IEP begins three months before the month of your 65th birthday.
This includes your birth month, and lasts up to three months after your birthday month.

When you apply for Social Security benefits, you’re automatically enrolled in Medicare Part A.

What is Medicare Part B?

Medicare Part B (also known as medical insurance) is an insurance plan that covers medical services related to outpatient and doctor care.

Part B covers medically necessary care and treatment, including:

Medically necessary services or supplies
Preventive services
Clinical research
Ambulance services
Durable medical equipment
Mental health services
Getting a second opinion before surgery
Limited outpatient medications

How much does Medicare Part B cost?

The standard costs for Medicare Part B in 2025 are:

Premium: $185 per month (or higher depending on your income)
Deductible: $257
Coinsurance: 20%

Enrollment Period for Medicare Part B

Same as Part A: a 7-month window surrounding your 65th birthday. Enrollment is automatic if you are receiving Social Security or Railroad Retirement Board benefits.

What is Medicare Part C?

Medicare Part C, also called Medicare Advantage, includes the coverage benefits of Medicare Parts A and B. It often offers prescription drug benefits and additional services like dental and vision.

Medicare Part C plans may cover:

Part A and Part B
Prescription Drugs (Part D)
Vision
Hearing
Dental
Health and wellness programs

How much does Medicare Part C cost in 2025?

Estimated average premium: $17 per month
Costs and coverage vary by plan and provider

Enrollment Period for Medicare Part C

You can enroll during your Initial Enrollment Period, but you must already have Medicare Parts A and B. Enrollment is done through a private insurance company.

What is Medicare Part D?

Medicare Part D offers prescription drug coverage and is provided by private insurance companies.

How much does Medicare Part D cost in 2025?

Estimated average premium: $39 per month
Deductible: Up to $590 (varies by plan)

Enrollment Period for Medicare Part D

Same 7-month Initial Enrollment Period as Parts A, B, and C. Enrollment must be completed through an insurance company.

5 questions to help you pick the right Medicare plan

To figure out which type of Medicare coverage is right for you, it helps to review your needs each year. Start by asking yourself these five questions: