Getting an early start on researching your Medicare options is the best way to find a plan that fits your healthcare needs and budget. But if you’re new to Medicare, all the terminology and choices can feel confusing or overwhelming. 

With so many different parts, plans, and policies available, it’s natural to wonder where to begin — or even what the difference is between a Medicare part or policy. Understanding the basics can help you feel more confident in choosing coverage that supports your health goals. Here’s what you should know about Medicare parts, plans, and policies, and how they differ from one another. 

What are Medicare parts, and how do they differ from plans?

A common misconception about Medicare is that it’s a single, all-inclusive plan. In reality, Medicare is made up of multiple distinct parts and plans. Understanding the difference between a Medicare part vs. plan is an important first step in finding coverage that meets your healthcare needs.

Much of the confusion comes from how Medicare is named, with some parts and plans even sharing the same letter. For example, Medicare Part A vs. Plan A sound similar, but they offer completely different benefits. Knowing how each option works helps you choose the right Medicare coverage for your health situation. We break down their key differences below:

Parts

Medicare Parts A, B, C, and D are the four main components of Medicare, with each covering different healthcare benefits. 

• Parts A and B make up Original Medicare, which is government-managed and includes inpatient and outpatient coverage.
• Medicare Parts C and D are both optional policies offered through private insurance carriers.
• Part D offers prescription drug benefits
• Part C (also called Medicare Advantage) bundles benefits from Parts A, B, and D together and may offer extra benefits like dental or vision coverage. 

Plans

In addition to the four parts of Medicare, you have the option of enrolling in a Medicare Supplement plan (also called a Medigap plan). There are currently 10 Medigap plans available, which are also named by letters: Plans A, B, C, D, F, G, K, L, M, and N (though Medicare Supplement Plans C and F aren’t available to those who turned 65 on or after January 1, 2020). 

All 10 plans are administered by private insurance carriers and cover out-of-pocket costs such as deductibles, copays, and coinsurance under Original Medicare. Typically, you will first need to be enrolled in Medicare Part A and/or Part B before you can sign up for a Medicare Supplement plan.

Medicare Advantage: part or policy?

While the terms part, plan, and policy refer to specific Medicare coverage options, it’s also common to use the word plan when referring to your Medicare coverage in general, whether it consists of Medicare Parts A and B, Original Medicare and a Medicare Supplement plan, or a Medicare Advantage (Part C) policy. 

To be fully transparent, let’s break down when to use which term:

• Part: when referring to Medicare Part A, B, C, or D
• Plan: a specific Medicare Supplement plan or when referring to your Medicare coverage in general (i.e., “I have a Medicare plan picked out”)
• Policy: typically only used to describe a specific policy from private insurers

The terminology around Medicare Advantage isn’t as straightforward because it falls under all three categories. It is a private Part C Medicare plan that guarantees benefits and services offered through Original Medicare, including inpatient hospital insurance, routine doctor visits, preventive care, and durable medical equipment. But since it’s through a private insurance carrier, the exact benefits and expenses can vary based on the specific policy you choose.

Choosing Medicare coverage that fits you

Enrolling in Medicare can feel daunting, but understanding the key terms and differences between Medicare parts, plans, and policies can make the process much easier. Before you enroll in a plan, you’ll need to evaluate your health goals, budget, and coverage needs. Think about which medical services you use most often and the level of coverage that best fits your current situation. If you want to continue seeing your current doctors or specialists, you will need to check whether they accept the Medicare plan or policy you’re considering. 

And remember, you don’t have to figure it out alone. Our licensed insurance agents can help you compare Medicare options and find coverage that fits both your healthcare needs and budget. Contact us at 1-888-411-7647 to get started.

*Disclaimer:

The information provided in this blog post is intended for general informational purposes only and does not constitute medical advice. It is not a substitute for professional medical consultation or treatment. Always consult with a qualified healthcare provider for any questions you may have regarding a medical condition.

SmartMatch does not endorse or recommend any specific products, treatments, or procedures mentioned in this article. Reliance on any information provided in this blog post is solely at your own risk. We encourage you to discuss any health concerns or questions with your doctor before making any decisions about your health or treatment.