Medicare can feel like a maze of letters and rules, but understanding the foundation—Parts A and B—is your first step toward confident healthcare planning.
What is Medicare Part A?
Often called "Hospital Insurance," Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. For most people who have paid Medicare taxes while working (usually at least 10 years), Part A is premium-free.
What is Medicare Part B?
Part B is your "Medical Insurance." It covers certain doctors' services, outpatient care, medical supplies, and preventive services. Unlike Part A, everyone pays a monthly premium for Part B, which is typically deducted directly from your Social Security check.
The Gaps in Original Medicare
While Parts A and B provide a solid foundation, they don't cover everything. You'll still be responsible for deductibles, copayments, and coinsurance. More importantly, Original Medicare does not have an out-of-pocket maximum, meaning your financial risk is uncapped.
This is why many people choose to enroll in a Medicare Supplement (Medigap) plan or a Medicare Advantage plan to help control these out-of-pocket costs.