While most Medicare recipients feel confident about their coverage options, only 13% can correctly identify the four main parts. If you’re approaching Medicare eligibility, you may feel overwhelmed by the different parts and coverage choices. But by taking the time to learn the basics, you’ll be better prepared to make more informed decisions when it’s time to enroll.

In this week’s Money Wisdom Question Series, Heath Grossman, CFP® shares a simple way to think about Medicare by using easy-to-remember associations for each part.

Medicare Part A: Access

Medicare Part A provides access to hospital-related coverage. This includes inpatient hospital stays, skilled nursing facility care, hospice care, and certain home health services. Part A is usually free if you or your spouse worked and paid Medicare taxes for at least 10 years.

Medicare Part B: Basics

Part B covers many of the basic everyday healthcare services we rely on. This includes doctor visits, outpatient care, durable medical equipment, and preventive services. Together, Parts A and B make up Original Medicare, which the federal government provides. But unlike Part A, Part B does require a monthly income-based premium.

Medicare Part C: Combo

Next is Part C, which is also known as Medicare Advantage. Part C covers all services from Part A and Part B, combined through a Medicare-approved private health plan. These private insurance plans often include additional benefits beyond Original Medicare, such as vision, hearing, and dental coverage.

Medicare Part D: Drugs

Finally, Part D helps cover the cost of prescription drugs. You can purchase Part D alongside Original Medicare or included as part of a Medicare Advantage plan. In addition, many people choose to purchase Medicare Supplement Insurance, also known as Medigap. This type of plan can help cover certain out-of-pocket costs that Medicare doesn’t pay.