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Original Medicare is also called Parts A and B, while Medicare Advantage, which bundles your coverage into one plan, is called Part C. Additional coverage, such as coverage for prescription medications, can be added on to Original Medicare, while Medicare Advantage is an all-in-one bundle.

How are the different Medicare options combined?

With Original Medicare, you start with Parts A and B, which both come from the federal government. Then, you can add extra plans, such as Part D or Medicare Advantage (Medigap), to get more coverage.

If you opt for a Medicare Advantage plan, all your coverage is bundled into one policy that comes from a private insurance company.

Medicare Advantage plans are a cheaper option, and they might be fine for people who don't need as much medical care. But as you age and face more health issues, Medicare Advantage plans can leave you with higher out-of-pocket costs.

Original Medicare vs. Medicare Advantage comparison table

New table

Medicare Advantage plans are a type of plan called "managed care," which means an insurance company sets prices for medical care. This is similar to how regular health insurance plans work. You'll usually have extra perks like coverage for dental and vision care, but you have to stay within a certain network of doctors. You may also run into issues like needing preauthorization before expensive procedures. However, Medicare Advantage plans are usually a cheaper option than stacking coverage types with Original Medicare.

Original Medicare, on the other hand, is what's called a "fee-for-service" plan. This means that Medicare sets the cost of medical care and doctors that take Medicare agree to the cost for each service. Original Medicare gives you access to most of the doctors in the country. The extra plans you add to Original Medicare can be expensive, but ultimately they'll pay for most of your medical bills.

Learn more: Medicare Advantage vs. Medigap

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What are the different Medicare coverage options?

Each part of Medicare can have multiple plans available. While you don't have to pick specific options for Parts A and B, you do have to choose a plan with Medicare Advantage (Part C), Part D and Medigap.

Part A: Hospitalization

Medicare Part A, part of "Original Medicare," covers hospitalization and care that you get when you have to stay in the hospital. The government provides the coverage, which means the benefits are the same no matter where you live.

You don't need to make any coverage decisions or choose any plans with Part A. Medicare Part A is free for 99% of enrollees. The most important thing to remember is to enroll on time to avoid penalties. For most people, you get coverage when you turn 65.

Learn more: How does Medicare Part A work?

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Part B: Doctors and outpatient care

Medicare Part B covers you when you go to the doctor but aren't staying in the hospital. The coverage is the same no matter where you live. Part B is the second half of "Original Medicare."

You won't have any decisions about plans to get Part B coverage. However, the cost of Part B can vary based on your situation. The standard rate is currently $185 per month, which is what most people pay. High-income earners pay more each month, while people with low incomes can qualify for savings.

There is also a penalty for enrolling late in Part B, except in circumstances when you're still working past age 65 and have coverage through your job. So make sure you sign up when you're first eligible.

Learn more: How does Medicare Part B work?

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Part C (Medicare Advantage): Bundled coverage

Medicare Advantage plans are all-in-one options that combine multiple types of coverage. Instead of coming from the government, these plans are sold by private insurance companies.

With Medicare Advantage, you have to choose a specific plan to buy. Depending on where you live, there's usually a wide variety of plan options, including different companies and coverage levels. The plan you choose will determine how much you pay for medical care and which doctors will be the cheapest.

The available plans change based on where you live, and on average, shoppers can choose from 38 different plans.

To start comparing your options, use Medicare.gov or a plan comparison tool to see what plans are offered in your area. Compare companies to find a plan that offers affordable rates, good service and has your preferred doctors in their network. Remember, if you have a Medicare Advantage plan, you can't add a standalone Part D plan or Medicare Supplement plan.

Learn more: How does Medicare Part C work?

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Part D: Prescriptions

Medicare Part D plans are sold by private insurance companies, and your plan options depend on where you live.

Part D plans give you prescription drug coverage, something that isn't automatically included in Original Medicare (Parts A and B). If you choose a Medicare Advantage plan, you won't be able to buy a standalone Part D plan. However, most Medicare Advantage plans come with prescription drug coverage built in.

All Part D plans have to cover some medications in certain key categories, like medications to treat depression or cancer. However, the specific medications you have coverage for depend on the plan you buy. When you're comparing options, make sure you look at each plan's list of covered medications, called a formulary, to make sure your medications are covered.

Your Part D plan options depend on where you live, and the first step when shopping is to find out which plans are offered in your area. When you're shopping, look at each plan's total spending, called the out-of-pocket maximum. You'll never spend more than $2,000 on covered medications. But if you need expensive drugs or take more than one medication, choosing a plan with a lower out-of-pocket maximum helps you keep your costs down.

Learn more: How does Medicare Part D work?

Medicare Supplement (Medigap): Extra coverage

Medicare Supplement insurance (Medigap) lowers what you pay for medical care by paying for most of the costs that Original Medicare leaves you with.

There are 10 plan options available, named A through N. The coverage for a given plan letter is the same no matter what company you choose. For example, Plan G from Blue Cross Blue Shield gives you the same coverage as Plan G from Mutual of Omaha. This makes it easier to compare Medicare Supplement plans than it is to compare many other types of Medicare, because you can focus just on the price of a plan and the company's customer service.

It's important to sign up for Medigap when you're first eligible, when you turn 65. During this time, your application can’t be denied and you won’t pay more because of your medical history.

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How to pick the right Medicare options for you

That's because you'll often pay higher rates if you wait to get certain types of Medicare, like Medigap. Deciding early what kind of coverage you want in the future can help you choose a combination of plans that work for you now and as you age.

Think about your current medical needs. Are you generally healthy and don't need much medical care? A Medicare Advantage plan could be a good option, especially if you find one that has your doctors in its network. But if you need frequent, complex or expensive medical care, staying on Original Medicare and buying separate Part D and Medigap plans gives you better coverage, even though it's more expensive.

Consider your future medical needs. No one can predict the future, but it can be helpful to try to anticipate what kind of medical attention you may need in the future. Do you have a family history of serious illness, for example, or do you have any current medical conditions that could create problems down the road? And regardless of your medical needs, would you prefer the peace of mind knowing you have better coverage should something serious happen?

Overall, sticking with Original Medicare and getting a Part D plan for medications and a Medicare Supplement plan to fill in gaps in coverage means you'll pay the least amount when you go to the doctor or need medical care. But it's important to decide early if you want a Medicare Supplement plan. It's cheaper and easier to get a plan when you're first eligible at age 65. Let's say you choose a Medicare Advantage plan when you first turn 65 but later decide you want a Medigap plan instead. You may not be able to afford a Medigap plan then, because prices go up as you age, which could leave you stuck in a plan that doesn't work for you anymore.

Decide on your monthly budget. No matter what plan combination you choose, you'll have to pay the monthly rate for Part B, which is $185 in 2025. Most people don't pay for Part A. Medicare Advantage, Medigap and Part D plans all have their own monthly rates, too.

In general, if your budget is tight, consider Medicare Advantage. Many plans have no monthly rate, which means you'd only pay your Part B rate each month. If you can afford higher rates, consider Original Medicare with a Part D and Medigap plan added on.

Rates vary depending on where you live, the company you're considering and the specifics of the plan. Before deciding that you can't afford a certain plan type, take the time to look at all the options in your area. You might be surprised at the range of options.

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Frequently asked questions

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Sources and methodology

Medicare Advantage and Medicare Part D costs and star ratings are averages of nationwide data and are based on public use files from the Centers for Medicare & Medicaid Services (CMS).

Medicare Supplement rates are from actuarial data for private insurance companies. Average rates are for a 65-year-old nonsmoking woman. The rates are the averages for when a person first becomes eligible for Medicare and health isn't used to set rates.

All plan data is based on 2025 rates.