Full Definition

Medicare Part A is funded primarily through payroll taxes paid during working years. Most Medicare beneficiaries pay no monthly premium for Part A. Coverage includes inpatient hospital care (subject to a per-benefit-period deductible of ~$1,632 in 2024), skilled nursing facility care following a qualifying 3-day inpatient hospital stay (100% coverage days 1-20, daily copayment days 21-100), Medicare-certified hospice care, and qualifying home health care.

Part A does not cover custodial care (long-term nursing home care not involving skilled services), assisted living, memory care, personal home care, or most dental, vision, or hearing care. The distinction between what Part A covers (skilled, medically necessary care) and what it does not cover (custodial, residential care) is one of the most important — and most misunderstood — concepts in senior care financing.