Medicare Part A vs. Part B: What’s the Difference?
Medicare Part A and Part B together make up “Original Medicare,” but they cover distinctly different types of care — Part A is generally hospital coverage, and Part B is generally medical/outpatient coverage.
Key Takeaways
Part A covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Part B covers outpatient care, doctor visits, preventive services, and durable medical equipment. Most people pay no premium for Part A but do pay a monthly premium for Part B.
What Medicare Part A Covers
- Inpatient hospital stays
- Skilled nursing facility care (for a limited time, following a qualifying hospital stay)
- Hospice care
- Some home health care services
Most people don’t pay a monthly premium for Part A if they or a spouse paid Medicare payroll taxes for at least 10 years while working. There’s still a deductible for each benefit period, plus coinsurance for extended hospital or skilled nursing stays.
What Medicare Part B Covers
- Doctor visits and outpatient care
- Preventive services, like screenings and annual wellness visits
- Durable medical equipment, like wheelchairs and walkers
- Some outpatient mental health services
Unlike Part A, most enrollees pay a standard monthly premium for Part B, along with an annual deductible and 20% coinsurance on most services after that deductible is met.
Why This Distinction Matters When You Enroll
Because Part A is usually premium-free and Part B is not, some people consider delaying Part B enrollment — but doing so without other qualifying coverage (like current employer coverage) can trigger a late-enrollment penalty that permanently raises your Part B premium. Understanding this A/B split is the foundation for the rest of the Medicare system, including Part C (Medicare Advantage) and Part D (prescription drug coverage).
Frequently Asked Questions
Do I need both Part A and Part B?
Most people enroll in both. Declining Part B without other creditable coverage can lead to a lifetime late-enrollment penalty if you enroll later.
Does Part A or B cover prescription drugs?
Generally no — outpatient prescription drugs are covered separately under Medicare Part D or through a Medicare Advantage plan that includes drug coverage.
Educational information only, not insurance or legal advice — see our Insurance Disclaimer. For current, authoritative details, see Medicare.gov. Try our Medicare Cost Calculator for an estimate.