Medicare Basics - The Four Parts of Medicare - A, B, C, D

Medicare Part A—Hospital Insurance—When you become eligible to join Medicare, you'll be enrolled in Part A. Most people don't pay an extra premium as you've been paying for Part A through paycheck deductions during your career. Part A covers inpatient hospital care, skilled nursing care, hospice care, and home health care. 

Medicare Part B—Medical Insurance—Part B requires paying a monthly premium, which can be deducted from Social Security. The premium you pay is determined by your adjusted gross income (AGI). Individuals with income above $106,000 and couples with income above $212,000 are subject to an IRMAA (Income Related Monthly Adjustment Amounts) surcharge. 

Part B covers doctor visits, lab tests, diagnostic screenings, medical equipment, ambulance, mental health, and other outpatient services.

Medicare Part C—Medicare Advantage (MA) Plans—Optional to join, Part C or Medicare Advantage (MA) plans are an alternative to original Medicare. MA plans are offered by private health insurers approved by Medicare. If you enroll in an MA plan, you still are enrolled in Medicare. MA plans package Parts A and B together and usually include Part D prescription drug coverage. 

Besides the coverage that Parts A and B provide, MA plans typically offer additional coverage such as vision, dental, hearing, and wellness benefits. This coverage is typically not provided under original Medicare. 

Also, importantly, MA plans have a most you can pay in a year limit. Traditional Medicare does not have such limits. If you face a high health expense year, a MA plan can help limit your exposure to unexpectedly high costs. 

Medicare Part D—Prescription Drug Plans—Part D drug plans help pay for prescription drugs not covered by original Medicare. All PSHB plans have a Part D Prescription Drug Plan (PDP) where Medicare eligible USPS annuitants and family members will be auto-enrolled. The PDP drug coverage will be as good or better than prescription drug coverage offered by the PSHB plan.