ORIGINAL MEDICARE has two core parts – Part A and Part B – both of which are managed by the Federal government. Beneficiaries of Original Medicare may also purchase add-ons, such as Part D prescription drug coverage and supplemental insurance, to complement existing coverage and to provide additional services.

Part A pays for hospital stays as well as skilled nursing services and hospice. There is no premium for Part A, although there can be a yearly deductible.

Part B pays for outpatient services and doctor visits, as well as for drugs that are administered by certified medical professionals. There is a monthly premium for Part B and a small deductible, both of which may change each year. After the deductible, the beneficiary pays an approximate 20% copayment for covered services. Notably, there is not a maximum out of pocket, which can leave users exposed to potentially high bills.