What Does Medicare Cover?

Medicare Part A covers hospital care, while Part B includes outpatient services and doctor visits. But Original Medicare alone doesn’t cap your out-of-pocket costs.

Learn why many people choose to supplement with a Medigap or Medicare Advantage plan to reduce expenses and gain peace of mind—especially when traveling or managing ongoing care.

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What Does Medicare Cover (And Why You May Need to Supplement It)?

Medicare consists of four parts, but the two most important to understand first are Part A and Part B — known collectively as Original Medicare.

✅ What Is Covered by Medicare?

Medicare Part A – Hospital Insurance

Covers:

  • Inpatient hospital stays

  • Skilled nursing facility care

  • Hospice care

  • Some home health care

Note: Part A has a deductible of $1,484 per benefit period (2022) and no cap on how many times you may pay it. Each benefit period starts when you’re admitted and ends after 60 days without hospital care.

Additional Costs After Deductible (2022):

  • Days 61–90: $371/day

  • Days 91+: $742/day (lifetime reserve days)

After lifetime reserve days are used, you’re responsible for all costs.

Medicare Part B – Medical Insurance

Covers:

  • Doctor visits

  • Preventive services

  • Outpatient care

  • Durable medical equipment

  • Emergency room and urgent care

Annual deductible: $217 (2022)
After deductible: You pay 20% coinsurance for most services.
Providers may charge more than Medicare’s approved rate (you pay the difference unless covered by Medigap).

❓Why Supplement Medicare?

Original Medicare does not cover:

  • All out-of-pocket costs

  • Foreign travel emergency care

  • Extended inpatient stays past reserve limits

  • Annual out-of-pocket maximums (there is no limit)

You may face:

  • High unexpected costs from hospital stays

  • 20%+ of all outpatient bills

  • Surprise bills if a provider charges more than Medicare allows

  • Zero coverage outside the U.S. (except in limited emergency cases)

🛡️ How Can You Protect Yourself?

Consider:

  • Medigap (Medicare Supplement) Plans: Help pay for deductibles, copays, and coinsurance. Many also offer foreign travel coverage.

  • Medicare Advantage Plans (Part C): Offered by private insurers, these plans often include prescription drug coverage and cap your annual out-of-pocket spending.

✅ Key Benefit: Both Medigap and Medicare Advantage Plans can limit your annual out-of-pocket costs, giving you more financial security.