How Does Each Part of Medicare Work and What Does It Cover?

To better understand how Medicare is structured, it’s helpful to know the role of each part and how they can be combined to give you complete coverage. Here’s how it all fits together:

Original Medicare (Parts A & B): Basic Coverage from the Federal Government

• Part A covers services related to hospital care. This includes hospital stays, surgeries, and care in skilled nursing facilities.

• Part B covers two types of care:

  • Medically necessary services, such as doctor visits, diagnostic tests, or treatments.

  • Preventive services, like check-ups, vaccines, ambulance transportation, and durable medical equipment.

You can use Original Medicare on its own or strengthen it with:

• A supplemental plan (Medigap)

• A standalone prescription drug plan (Part D)

• Or keep it as is, without additional coverage

Medicare Advantage (Part C): An All-in-One Alternative with Extra Benefits

This option is part of the federal program but managed by private insurers, such as Cigna Healthcare.

• It includes everything Original Medicare covers: hospital care (Part A) and medical care (Part B).

• Most plans also include prescription drug coverage (Part D).

• Many plans add extra benefits such as basic dental, vision, or hearing services, depending on the provider.

• In some cases, you can pair it with a standalone Part D plan if drug coverage is not already included.

Medicare Part D: Prescription Drug Coverage

• Part D is designed specifically to help cover the cost of prescription drugs.

• While it’s part of the Medicare system, it’s also offered through private insurers such as Cigna Healthcare.

• You can combine Part D with:

  • Original Medicare (Parts A & B)

  • Supplemental plans (Medigap)

  • Or choose a Medicare Advantage plan that already includes drug coverage