If you’re thinking about joining Medicare, it’s important to understand the different options available. There are Original Medicare Parts A and B, Medicare Advantage Plans C and D, and Medicare Supplement plans A-N. Choosing the right plan for you depends on your needs, budget, and preferences. Find out more about each option to help you make an informed decision that balances affordability with comprehensive coverage.

The alphabet soup of Medicare plans can seem daunting at first. To simplify the process, we’ll break down the options into manageable parts:

Part C Medicare Advantage plans

Medicare Advantage plans are offered by private insurance companies and include a combination of Medicare Part A and Part B services, as well as typically Part D drug coverage. They can vary in cost and benefits, but the specifics of each plan are standardized and named by letter (Plan A, Plan F, etc.). You can also purchase a Medicare Part D stand-alone plan from private insurers if you want drug coverage only.

Many Medicare Advantage plans are required by law to provide at least the same coverage as original Medicare, and many offer additional benefits. These extras can include gym memberships, health wellness programs and dental care. These perks can add up to big savings if you choose the right plan.

A Medicare Advantage plan’s network of providers is vital to its success. These are doctors and other health providers that have agreed to work with the plan at a discounted rate. Most Medicare Advantage plans require you to choose a primary care physician from their network, who will coordinate your care. This includes arranging appointments with specialists, and making sure your medications are covered.

Almost all Medicare Advantage plans feature out-of-pocket spending limits. This safeguards you from overwhelming expenses in the event of an illness or accident. This year, the maximum out-of-pocket limit for Medicare Advantage plans is $8,850.

Most Medicare Advantage plans offer extra benefits like fitness and wellness programs, vision, hearing and dental services. In 2024, nearly all enrollees in Medicare Advantage plans are in a plan that offers at least some of these options.

Since 2015, a growing share of Medicare Advantage plans have estimated their costs to provide Medicare-covered services (the “bid”) lower than the amount that CMS will pay for those same services in their service area (the “benchmark”). The difference between bids and benchmarks is allocated as rebates back to the plan, which can be used to cover supplemental benefits or reduce the premium.

The best Medicare Advantage plans are affordable, have high-quality doctors and hospitals in their networks, and feature out-of-pocket spending limits that won’t get you stuck with a costly bill. To help you find the perfect plan for you, NerdWallet analyzed the 26 biggest Medicare Advantage brands—including a handful of insurers that offer multiple Medicare Advantage plans—to identify the best Medicare Advantage plans for 2019. We consider monthly premiums, annual out-of-pocket spending limits, the number of drugs included in the formulary and copayment/coinsurance amounts for each type of drug.