Medicare is a health insurance program for people 65 and over, or those with certain disabilities. It is made up of four parts: Part A, Part B, Part C, and Part D. Part A covers hospitalization, while Part B covers outpatient care. Part C, also known as Medicare Advantage, is a private health insurance plan that includes all the benefits of Parts A and B. Part D is a prescription drug plan. Medicare benefits are not free – you will have to pay premiums, deductibles, and coinsurance for most services. However, Medicare can help reduce your out-of-pocket costs for health care.