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Table of Contents
Understanding Medicare > Medicare Parts

Medicare Part A & B

Smiling person with short hair wearing a light blue button-up shirt against a plain background.
Written by:
Aaron Garcia
Ed McClane
Reviewed by:
Ed McClane

Key Takeaways

  • Original MedicareOriginal Medicare is a fee-for-service health insurance program available to Americans aged 65 and older and some individuals with disabilities. Original Medicare is provided by the federal government and is made up of two parts: Part A (hospital insurance) and Part B (medical insurance). is federally administered insurance for individuals who are 65 years of age and older or who have certain disabilities.
  • Original Medicare has two parts: Medicare Part AMedicare Part A is hospital insurance, which covers the care you receive while admitted to a hospital, skilled nursing facility, or other inpatient facility. Medicare Part A is part of Original Medicare. is hospital insurance, and Medicare Part BMedicare Part B is medical insurance that covers Medicare-approved services — such as medically necessary treatment and preventive services — and certain other costs, like durable medical equipment. Medicare Part B is part of Original Medicare. is medical insurance.
  • People on Medicare can see any doctor in the country who accepts Medicare.
  • You have a seven-month window when you turn 65 called your Initial Enrollment Period (IEP)The Initial Enrollment Period (IEP) is the seven-month period around your 65th birthday when most people are eligible for the first time to enroll in Medicare. to enroll in Original Medicare — the month of your birthday plus three months before and after your birthday month. If you miss your IEP, you’ll need to wait for the Annual Enrollment Period or qualify for a Special Enrollment Period.

What Is Medicare?

With more than 60 million Medicare enrollees in the country, if you’re an adult in the U.S. chances are that you either receive Medicare benefits or know someone who does. If you or a loved one will soon be eligibleSome health plans require you to meet minimum requirements before you can enroll. for Medicare, we have answers to your questions.

Medicare: The Basics

Medicare is public health insurance for adults who:

  • Are 65 years of age or older.
  • Are younger than 65 years of age but have qualifying disabilitiesA disability is a restriction or lack of ability (resulting from an impairment) to perform an activity in the manner or within the range considered normal for a human being. The Social Security Administration judges disability — and whether you qualify for financial assistance — based on whether you can work. .
  • Are U.S. citizens or permanent residents.

Administered by the Centers for Medicare & Medicaid Services (CMS), Medicare receives funding through the federal budget, income taxes paid to Social Security and Medicare, and premiums paid by Medicare beneficiaries. Original Medicare (Part A and Part B) insurance can be used at any doctor’s office or hospital in the U.S. that accepts it.

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What’s Covered by Medicare Part A and B?

Medicare Part A and Medicare Part B cover most standard healthcare services. Part A is hospital insurance, covering inpatient care you receive in hospitals and other facilities. Part B is medical insurance, which covers doctor’s office visits and other outpatient care.

Part A

Hospital Insurance

  • Inpatient
  • Skilled nursing facility care
  • Hospice care
  • Home health care

Part B

Medical Insurance

  • Doctors & other care providers
  • Outpatient care
  • Home health care
  • Medical equipment (like walkers, wheelchairs, or beds)
  • Preventive & screening services

Between Parts A and B, Original Medicare helps pay for a wide range of essential services. To pay the costs Original Medicare doesn’t cover, you may consider adding a Medicare Supplement Insurance (Medigap) plan from a private insurance carrier. You also have the option to switch to a privately administered Medicare Advantage plan, which substitutes for Original Medicare and may include additional benefits.

How Much Do Medicare Part A and B Cost?

Medicare part A and B can help you save on healthcare costs, but it isn’t free. Here are some of the expenses you should consider as you plan your budget:

Medicare Part A costs for 2025

  • Deductible: $1,676
  • Premium: $0 (for most people)
  • Medicare Part A daily coinsurance for hospital stays after meeting deductible:
    – Days 0-60: $0
    – Days 61-90: $419 per day
    – Lifetime Reserve Days: $838 per day

Keep in mind:

  • Most people don’t pay a Part A premiumA premium is a fee you pay to your insurance company for health plan coverage. This is usually a monthly cost. as long as they or a spouse worked and paid taxes for a certain length of time, usually about 10 years.
  • You’ll be responsible for meeting your Part A deductibleA deductible is an amount you pay out of pocket before your insurance company covers its portion of your medical bills. For example: If your deductible is $1,000, your insurance company will not cover any costs until you pay the first $1,000 yourself. before insurance starts to pay.

Medicare Part B costs for 2025

  • Deductible: $257
  • Premium: $185
  • After meeting your deductible, you will pay about 20% of the cost of most care in coinsurance.

Keep in mind:

  • Medicare Part B has a standard yearly deductible you must meet before insurance starts to pay.
  • Medicare Part B has a standard monthly premium, but people with higher incomes pay more.

Let’s find your ideal Medicare Advantage plan.

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When Can I Add Part D Coverage?

To cover the costs of most medications, you will need a Medicare Part D prescription drug plan:

  • Part D is an optional Medicare benefit that helps you pay for any prescription medications you currently use or will need in the future.
  • Private health insurance companies administer Part D. The federal government sets specific requirements, but private health insurance companies set costs and decide which drugs to cover.
You can either add a Part D plan to your Original Medicare coverage or choose to enroll in a Medicare Advantage prescription drug (MAPD) plan.

How Do I Enroll in Medicare Part A and B?

How do you enroll in Original Medicare? Most Americans are automatically enrolled in Part A when they reach 65 years of age.

You must contact the Social Security Administration to enroll in Part B if you’re already enrolled in Part A. You can enroll online if you actively sign up for both Parts A and B at the same time.

Because you pay a premium for Part B coverage, you can turn down the coverage. If you turn down Part B coverage during your Initial Enrollment Period but choose to join later, you may be charged a late enrollment penalty and have to pay a higher monthly premium.

When Am I Eligible for Medicare Part A and B?

The majority of Americans enroll in Medicare health insurance around the time they turn 65 years old. Remember the seven-month rule, which says that you have seven months to enroll in Medicare during the year you turn 65.

For example, if you turn 65 in August:

  • Three months before your birth month: May, June, July
  • Your birth month: August
  • Three months after your birth month: September, October, November

If your birthday is on the first of the month, your enrollment period starts four full months before you turn 65. The period ends two months after the month when you turn 65.

You’re eligible for Medicare if you’re an American citizen or a resident who has lived in the U.S. legally for five or more years, and if any of the following apply to you:

  • You’re 65 years of age or older.
  • You’ve received Social Security disability benefits for more than 24 consecutive months.
  • You’ve received disability benefits from the Railroad Retirement Board for more than 24 consecutive months.
  • You have kidney failure, also known as end-stage renal disease, requiring permanent dialysis or need a kidney transplant.
  • You’re living with Amyotrophic Lateral Sclerosis (ALS), also known as Lou Gehrig’s disease.

Start your Medicare Advantage PlanFit CheckUp today.

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Are Medicare Part A and B the Right Choice for You?

Here’s a recap of Medicare Part A and B, its costs, how to enroll, and what it covers:

  • Original Medicare includes Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance).
  • If you want prescription drug coverage, you can join a separate Medicare Part D plan from a private health insurance carrier.
  • To help pay your out-of-pocket costs in Medicare Part A and B (like 20% coinsurance), you can also explore Medicare Supplement coverage.
  • You can use any doctor or hospital that accepts Medicare, anywhere in the U.S.
  • Another option is a Medicare Advantage Part C plan. We recommend you also take time to learn about both Medicare Advantage and Medigap, comparing what you can expect to pay in premiums and out-of-pocket costs.

Contact a GoHealth licensed insurance agent to discuss your options and get answers to your questions.

Medicare Part A and B FAQs

You can enroll in Medicare part A and B over the phone, in person, or online. Your initial enrollment window spans seven months, starting three full months before the month of your 65 birthday and ending three full months after your birthday month.

To enroll, you will need some basic information:

  • Name
  • Address
  • Phone number
  • Social Security number
  • Identification documents, such as a birth certificate, driver’s license, or proof of U.S. citizenship.

If you’re working at age 65 and you have health coverage from your employer, then you don’t need to enroll in Medicare Part A and B. You’ll be eligible for a special enrollment period if you lose your coverage.

If your company has fewer than 20 employees receiving health insurance, then you should enroll in Medicare Part A and B as your primary insurance. Your employer can pay less or nothing for your care in this instance.

Since most people pay no monthly premium for Medicare Part A, it’s likely a good idea to enroll when you turn 65, even if you’re waiting to enroll in Part B. If you need to be hospitalized, Part A may help with costs not covered by your employer-provided insurance.

Medicare open enrollment occurs each fall, from October 15 to December 7. At this time, you can switch from Medicare Part A and B to Medicare Advantage (Part C). If you drop Medicare Advantage and switch back to Original Medicare, you can sign up for Part D during the open enrollment period.

Between January 1 and March 31 each year, anyone with a Medicare Advantage plan can elect to leave and return to Original Medicare, or you can switch to a different Medicare Advantage plan.

You may also qualify for Special Enrollment Periods during other times of the year.

Contact a licensed insurance agent to discuss your options and find a Medicare Advantage plan that fits your needs.

You can spend the money you’ve already deposited in your Health Savings Account (HSA)A Health Savings Account (HSA) can pay for healthcare expenses. Your pre-tax income is deposited into your HSA to pay for medical expenses. prior to turning 65. You can use any saved HSA funds on Medicare Part B and Part D expenses. If you contribute to an HSA, you should know that you are not allowed to contribute to an HSA once you turn 65.

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