What Is Medicare? Part A vs. Part B Explained

Medicare has multiple parts and each covers something different. Here’s a plain-language breakdown of what Part A and Part B actually cover, what they cost, and where the gaps are.

Part A (Hospital)

$0 Premium

For most people with 40+ work quarters

Part B (Medical)

$202.90/mo

Standard 2026 premium (may be higher with IRMAA)

Coverage Gap

20%

What you owe on most Part B services after the deductible

Medicare Part A: Hospital Insurance

Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health services. Most people don’t pay a monthly premium for Part A because they (or their spouse) paid Medicare taxes for at least 40 quarters (10 years) while working.

What Part A Covers2026 Cost to You
Inpatient hospital stay (days 1–60)$1,736 deductible per benefit period
Inpatient hospital stay (days 61–90)$434/day coinsurance
Inpatient hospital stay (days 91+)$868/day (lifetime reserve days)
Skilled nursing facility (days 1–20)$0
Skilled nursing facility (days 21–100)$217/day
Hospice care$0 for most services
Home health care (if eligible)$0

Medicare Part B: Medical Insurance

Part B covers doctor visits, outpatient services, preventive care, lab tests, durable medical equipment, and some home health services. Unlike Part A, Part B requires a monthly premium from everyone enrolled.

What Part B Covers2026 Cost to You
Annual Part B deductible$283 (you pay this first)
Doctor visits and outpatient services20% after deductible (no cap)
Preventive services (annual wellness visit, screenings)$0 (no deductible or coinsurance)
Durable medical equipment20% after deductible
Mental health services (outpatient)20% after deductible
Ambulance services20% after deductible

What Happens If You Sign Up Late

Part B (and Part D) carry permanent late penalties if you delay without other qualifying coverage. Use the 2026 figures to see what waiting would add to your premium.

The Part B penalty adds 10% of the standard premium ($202.90 in 2026) for each full 12-month period you were eligible but didn't enroll (without other job-based coverage).

Optional: fill these to auto-calculate your months late, or just type the number below.

Only full 12-month periods count toward the penalty.

$0.00

Estimated monthly penalty added to your Part B premium

0%
Penalty rate (10% per full year)
$202.90
New monthly premium
$0
Extra cost per year

Enter your months above to see your estimated penalty.

The Part D penalty adds 1% of the national base premium ($38.99 in 2026) for every full month you went without Part D or other creditable drug coverage (a gap of 63+ days).

Optional: fill these to auto-calculate your uncovered months, or just type the number below.

Every full uncovered month counts (gaps of 63+ days).

$0.00

Estimated monthly penalty added to your Part D premium

0
Uncovered months counted
$0
Extra cost per year
$0
Cost over 10 years

Enter your months above to see your estimated penalty.

What Medicare Does NOT Cover

Original Medicare (Parts A and B) has significant gaps. Understanding what isn’t covered is just as important as knowing what is:

Not covered by Original Medicare: Routine dental, vision, and hearing care, Prescription drugs (requires Part D or MAPD), Long-term care / nursing home custodial care, Cosmetic procedures, Most care received outside the United States

The most significant financial gap in Original Medicare is the unlimited 20% coinsurance under Part B. There is no cap, if you have a $200,000 surgery, your 20% share is $40,000. This is the core reason most people on Original Medicare add either a Medigap plan or Medicare Advantage.

Have questions about what Medicare covers in your specific situation? We’ll walk through it with you no cost, no pressure.

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