What is Medicare Part A?
Medicare Part A is Hospital Insurance that helps pay for inpatient care and related inpatient services at:
- Hospitals
- Skilled nursing facilities
- Hospice
It also covers some rehabilitation services and outpatient home health care after a qualifying hospital stay.
What is Medicare Part B?
Medicare Part B is Medical Insurance that covers care at a clinic or at a hospital as an outpatient. Covered services include:
- Doctor visits
- Ambulatory surgery center services
- Ambulance and emergency room services
- Preventive services like a flu shot or a mammogram
- Clinical laboratory services
- X-rays, MRI scans, CT scans, EKG and diagnostic tests
- Physical therapy, occupational therapy, speech-language pathology services
- Mental health care
- Durable medical equipment for use at home like a wheelchair or walker
How Much Does Part A & B Cost?
Part A is free if you worked and paid Medicare taxes for at least 10 years. You may also be eligible because of your current or former spouse's work.
Part B has a monthly premium that is either deducted from your monthly Social Security benefits check or that you pay directly to Medicare. The amount you pay can vary depending on your tax-reported income from two years prior. The standard monthly Part B premium in 2026 is $202.90, an increase of $17.90 over 2025, and the 2026 Part B deductible is $283. Monthly Part B premiums are set by Medicare and subject to change annually.
What Happens If I Don't Enroll In Original Medicare?
Enroll in Original Medicare (Parts A & B) on time to avoid late enrollment penalties.
Part A Late Enrollment Penalty
If you must pay a Part A premium and enroll late, you could pay a penalty. The late enrollment penalty is 10% of the premium. You pay the penalty in addition to your premium for twice the number of years you delay enrollment. For example, if you delayed enrollment for 2 years, you will pay an additional 10% of the Part A premium for 4 years.
Part B Late Enrollment Penalty
The Part B penalty is 10% of the monthly premium amount for each full 12-month period enrollment is delayed. You pay the penalty in addition to your premium for as long as you have Medicare Part B. For example, if you delayed enrollment for 3 years, you will pay an additional 30% of the Part B premium as long as you have Part B.