Medicare Part A vs Part B Explained Simply

Medicare is divided into “parts,” but the most important ones to understand are Part A and Part B. Together, they make up what’s called Original Medicare. It is important to note that Original Medicare only covers 80% of the costs, which is why having a secondary plan is highly encouraged, along with drug coverage.

Medicare Part A: Hospital Insurance

Part A mainly covers inpatient care.

It generally includes:

• Hospital stays

• Skilled nursing facility care (short-term)

• Hospice care

• Some home health services

  
  

Most people don’t pay a monthly premium for Part A if they worked and paid Medicare taxes long enough.

However, Part A does have:

• A deductible per benefit period

• Daily coinsurance for longer hospital stays

  
  

Medicare Part B: Medical Insurance

Part B covers outpatient and preventive care.

This includes:

• Doctor visits

• Preventive screenings

• Lab work

• Durable medical equipment

• Outpatient procedures

  
  

Part B has:

• A monthly premium

• An annual deductible

• Typically 20% coinsurance after the deductible

  
  

Key Differences at a Glance

Part A helps when you’re admitted to a facility. Part B helps when you receive medical care without being admitted.

Both parts work together, and most services fall clearly into one category or the other.

Why This Matters

Understanding the difference helps explain:

• Why some services are billed differently

• Why you may receive multiple bills

• Why some costs surprise people

  
  

Bottom Line

Part A = inpatient and facility care; Part B = doctors and outpatient care.

Knowing which part covers what can help you avoid unexpected costs and confusion.

It's crucial to recognize that Medicare Part A & B don't cover all expenses. By identifying the gaps, you can prepare for those "unexpected" costs or care. Refer to this post for a clearer understanding of what this entails.