What does Medicare cover? The answer to this question depends on what type of plan you choose. Take a look at what you can expect from Original Medicare and what you might need a supplement or Medicare Advantage (Part C) plan for.

Part A Coverage

Also known as hospital coverage, Part A is usually free for most people. Even though you won't need to pay a monthly premium (fee) for this plan, it won't cover every possible healthcare-related cost. Part A covers inpatient hospital care, skilled nursing facility care, nursing home care, hospice care, and home health care. But this doesn't mean each type of care or service is free.

You will need to pay an annual benefit period deductible and coinsurance. The amount of coinsurance depends on the number of days you spend in the hospital, get skilled nursing care, or the services you need.

Some people may not qualify for free Part A coverage. According to the U.S. Centers for Medicare and Medicaid Services, in 2021 Part A premiums are either $259 or $471 per month. The specific amount you pay for a premium depends on the length of time you (or your spouse) worked and paid Medicare taxes. 

Part B Coverage

If you reviewed your Part A coverage and wondered why it doesn't pay for medical (doctor's office visit) costs, you're not alone. Part A only covers hospitals, nursing facilities, and similar types of care. This part does not include doctor's office visits and other preventative screenings and services. Part B pays for these types of medical care. The specific services covered depend on federal and state laws and insurance providers. 

Along with well-visits and sick patient visits, Part B may also cover inpatient and outpatient mental health services, ambulance services, and screenings for some conditions and diseases. These may include screening procedures for cardiovascular disease, colorectal cancer, depression, lung cancer, and vaccinations for the flu, COVID-19, and Hepatitis B. Some services aren't covered by all plans. You may also need to pay coinsurance or have other out-of-pocket expenses. 

Part B insurance is not free. The monthly premium you pay is set each year and varies depending on your income level.

Other Parts and Coverage

Parts A and B are Original Medicare. Even though these parts cover many potential healthcare-related expenses, they may still leave you with some expenses. These include prescription drugs, some types of medical services, deductibles, copays, and coinsurance. 

If you prefer not to pay out-of-pocket for every extra or non-covered expense, you can add other parts or types of insurance. Part D will pay for some of your prescription drugs, a supplement (Medigap) covers deductibles/copays/coinsurance, and Advantage plans (Part C) bundle hospital, medical, and prescription coverages.