Medicare in four minutes: Parts A, B, C and D

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What this video covers

• 0:00 — Why Medicare uses letters, and what each one means
• 0:48 — Part A: hospital coverage, and why it’s usually premium-free
• 1:35 — Part B: doctors, outpatient care, and the 20% you’re left with
• 2:20 — Part C: how Medicare Advantage replaces the way you receive A and B
• 3:05 — Part D: prescriptions, and the yearly out-of-pocket cap
• 3:40 — The fork in the road: Medigap plus Part D, or Medicare Advantage

Written summary

Medicare has four parts. Part A covers hospital stays and is premium-free for most people. Part B covers doctors and outpatient care, carries a monthly premium, and leaves you responsible for 20% of approved costs with no annual ceiling. Part C — Medicare Advantage — is a private plan that takes over how you receive Parts A and B, usually with a network, an out-of-pocket maximum, and drug coverage included. Part D is prescription coverage, either bundled into Part C or bought as a stand-alone plan.

Nearly every decision comes down to one choice: Original Medicare with a Medigap policy and a Part D plan, or a Medicare Advantage plan. Neither is universally better. It depends on your doctors, your prescriptions, how much you travel, and whether you’d rather pay a steady premium or lower premiums with copays as you go. The full written version is on our Medicare basics page.

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