Medicare’s four parts explained

For many older Americans, Medicare is their primary health insurance, and without it they might not enjoy an independent lifestyle.

Medicare can be a little confusing to newcomers so we’ve broken it down into the four parts of Medicare.

• Part A (Hospital insurance) helps cover inpatient hospital care, skilled nursing care, hospice care and home health care. Most people get Medicare Part A premiumfree since it is earned by working and paying Social Security taxes.

• Part B (Medical insurance) helps cover services from doctors and other outpatient health care providers, outpatient care, home health care, durable medical equipment and some preventive services. Most people pay a monthly premium for Part B. Some high-income individuals pay more than the standard premium. If you don’t enroll in Part B during your initial enrollment period and then decide to do so later, your coverage may be delayed and you may have to pay a higher monthly premium for as long as you have Part B.

• Part C (Medicare Advantage) allows you to choose to receive all of your health care services through a provider organization. This plan includes all benefits and services covered under Part A and Part B, usually includes Medicare prescription drug coverage, and may include extra benefits at an extra cost. You must have Part A and Part B to enroll in Part C.

• Part D (Medicare prescription drug coverage) helps cover the cost of prescription drugs. Many people pay a premium for Part D. However, people with low income may qualify for Extra Help to pay the premium and deductible.