Medicare Parts A, B, C and D Explained

Medicare has four parts. Part A covers hospital care, Part B covers doctors and outpatient care, Part C (Medicare Advantage) is a private plan that delivers your A and B benefits a different way, and Part D covers prescription drugs. Most people end up with A and B plus either a Part D plan or a Medicare Advantage plan.

The letters are confusing because Medigap policies use letters too. Plan G is not "Part G." We will untangle that below.

What does each part of Medicare cover and cost?

Each part covers a different kind of care and has its own costs. This table uses official 2026 figures from CMS and the 2027 Part D figures CMS finalized in April 2026.

The 2027 Part A and Part B amounts are not announced yet. CMS usually publishes them in November.

What is Part A?

Part A is hospital insurance. It pays for your room, meals, nursing and drugs while you are formally admitted to a hospital, plus short-term skilled nursing facility care after at least a 3-day inpatient stay, hospice care, and some home health care.

About 99% of people pay no Part A premium because they or a spouse paid Medicare taxes for about 10 years. The cost shows up when you use it: a $1,736 deductible for each benefit period in 2026, then daily coinsurance for long stays. Full detail is in our Medicare Part A guide.

What is Part B?

Part B is medical insurance for care outside the hospital and for doctors' services anywhere. It covers office visits, outpatient surgery, lab tests, imaging, ambulance rides, durable medical equipment like walkers, mental health care, some drugs given in a clinic, and many preventive services.

Part B is where most people feel Medicare's cost. In 2026, you pay a $202.90 monthly premium (more with higher income), a $283 yearly deductible, and usually 20% of the Medicare-approved amount after that. Read the Medicare Part B guide for the full picture, including income-based surcharges.

What is Part C, or Medicare Advantage?

Medicare Advantage is a private health plan approved by Medicare that replaces how you receive Parts A and B. You still have Medicare, and you still pay your Part B premium, but the plan pays your claims instead of Original Medicare.

How Medicare Advantage plans generally work:

• You must have both Part A and Part B to join.
• Most plans include Part D drug coverage in the same plan.
• Most use a network. HMOs usually require in-network care; PPOs let you go out of network for a higher cost. See HMO vs PPO.
• You may need prior approval for some services.
• Every plan has a yearly out-of-pocket limit on covered medical care, and the limit varies widely from plan to plan.
• Many plans offer extras Original Medicare does not, such as some dental, vision or hearing coverage.

For 2027, CMS says Nebraska has 48 Medicare Advantage plans, down from 50 in 2026. Plan availability, premiums, networks and benefits vary by county and change every year, so check your doctors and hospitals before you join. Start with Medicare Advantage in Nebraska.

What is Part D?

Part D is prescription drug coverage from a private plan. You can get it as a standalone plan alongside Original Medicare, or built into a Medicare Advantage plan.

The rules are set federally, and they changed a lot after 2024. For 2026 and 2027:

Each plan has its own list of covered drugs (the formulary), pharmacy network and premium. CMS counts 9 standalone Part D plans in Nebraska for 2027. See Part D plans in Nebraska and how the out-of-pocket cap works.

Is Plan G the same as Part G?

No. There is no Part G. Medicare parts (A, B, C, D) are pieces of the Medicare program. Medigap plans (A, B, C, D, F, G, K, L, M, N) are standardized private insurance policies that help pay your share of Original Medicare costs.

So "Plan A" is a basic Medigap policy, while "Part A" is hospital insurance. "Plan D" is a Medigap policy, while "Part D" is drug coverage. Medigap plans do not include drug coverage at all.

Under federal rules, a Plan G from one company covers the same benefits as a Plan G from any other company; only the price and service differ. Plans C and F can be sold only to people eligible for Medicare before January 1, 2020. Compare two common letters on Medigap Plan G and Plan G vs Plan N.

How do the parts fit together?

Most people choose one of two setups. Both start with Parts A and B.

Here is a simple 2026 example. Say you spend 4 days in the hospital and your doctors bill $2,000 in Medicare-approved Part B charges.

• Original Medicare only: you pay the $1,736 Part A deductible, plus the $283 Part B deductible, plus 20% of the remaining $1,717 ($343.40). Total: $2,362.40.
• Original Medicare with Medigap Plan G: Plan G pays the Part A deductible and your 20%. You pay only the $283 Part B deductible, once for the year.
• Medicare Advantage: you pay whatever that plan's hospital and doctor copays are, up to its yearly limit. That varies by plan, which is why you compare the details.

The tradeoffs, especially for Nebraskans who travel or use Lincoln and Omaha specialists, are covered in Medigap vs Medicare Advantage.

Can you have Medicare Advantage and Medigap at the same time?

No. Medigap only works with Original Medicare. Medicare & You 2027 says it is illegal for anyone to sell you a Medigap policy while you are in a Medicare Advantage plan unless you are switching back to Original Medicare. A Medigap policy also cannot pay your Medicare Advantage copays or premiums.

If you are unsure which parts you have, your red, white and blue Medicare card shows Parts A and B. A Medicare Advantage or Part D plan sends its own card. You can also call 1-800-MEDICARE (1-800-633-4227), available 24 hours a day, 7 days a week (TTY 1-877-486-2048), or Nebraska SHIP at 1-800-234-7119 for unbiased counseling. If you want help comparing plans from several companies, talk to Bill.