Medicare is filled with a number of terms that need to be learned to fully understand your new health insurance. When you become eligible for Medicare, you will need to learn an entirely new vocabulary, which can be very overwhelming and complicated. One of the most common mistakes people make is failing to distinguish between “parts” and “plans.”
It is easy to get these two terms mixed up. When you hear the word “part,” it is referring to official Medicare coverage. There are only four parts to Medicare: A, B, C, & D. Part A is inpatient/hospital coverage. Part B is outpatient/doctor’s coverage. Part C includes Medicare Advantage plans. Part D is your prescription drug coverage (this is easiest to remember…’D’ stands for drugs).
The word “plan” is used to identify the different types of Medicare Supplements. Medicare Supplements are identified by letters A through N and are referred to as “Plan G,” “Plan F,” etc. These Medicare Supplement plans help fill in the out of pockets you would have to pay if you only had basic Medicare coverage (parts A and B).