Article · Medicare · 6 min

Medicare in 10 Minutes

Parts A, B, C, D — what each actually does and what it costs.

Educational only. This content is general retirement education — not personalized financial, tax, or legal advice. Every situation is different; if you'd like Ebby to look at yours, use Talk With Ebby.

Part A — Hospital

Covers inpatient hospital, skilled nursing, hospice. Free for most people who paid Medicare taxes 10+ years. Deductible per benefit period, not per year.

Part B — Medical

Covers doctors, outpatient care, preventive services. Standard 2026 premium: $202.90/month, higher based on income (IRMAA). Annual deductible $283, then Medicare pays 80%.

Part C — Advantage

Private plan that replaces A + B (often includes D). Lower monthly premium, but network restrictions and prior authorizations. Not the same as Original Medicare + Medigap.

Part D — Prescription drugs

Standalone drug plan. Premiums vary by plan. In 2026, annual out-of-pocket drug costs are capped at $2,100 (up from $2,000 in 2025) — a huge change from pre-2025 years when there was no cap.

Medigap (Supplement)

Fills gaps in Original Medicare (the 20% not covered by Part B). Higher monthly premium, but predictable costs and no networks. Best time to buy: your 6-month open enrollment window at 65.

Ebby's takeaway

The choice between Advantage and Original + Medigap is the biggest Medicare decision you'll make — and switching later is often not possible without underwriting.

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