Medicare Part A
Medicare Part A is the hospital insurance half of Original Medicare, covering inpatient hospital stays, skilled nursing facility care, hospice, and some home health. Most beneficiaries pay no premium because they earned 40 quarters of Medicare taxes. For 2026 the inpatient deductible is $1,736 per benefit period.
- 2026 inpatient deductible
- $1,736 per benefit period
- 2026 coinsurance days 61–90
- $434/day
- Lifetime reserve days
- $868/day (60 total)
- Premium-free eligibility
- 40+ quarters of Medicare taxes
What does Medicare Part A cover?
Part A is the hospital insurance component of Original Medicare. It pays for medically necessary inpatient hospital stays, care in a skilled nursing facility (SNF) after a qualifying 3-day inpatient stay, hospice care, and some home health services. The common thread is facility and institutional care, not the physician's professional work, which falls under Medicare Part B.
Most beneficiaries pay no premium for Part A because they or a spouse paid Medicare payroll taxes for at least 40 quarters (10 years). Those with 30–39 quarters pay a reduced premium; fewer than 30 quarters means the full buy-in premium.
What does Part A cost in 2026?
Premium-free does not mean cost-free at the point of service. The patient owes an inpatient deductible each benefit period, then coinsurance kicks in on longer stays:
| 2026 cost | Amount |
|---|---|
| Inpatient deductible (per benefit period) | $1,736 |
| Days 1–60 | $0 coinsurance after deductible |
| Days 61–90 | $434/day |
| Lifetime reserve days (60 total) | $868/day |
| SNF days 21–100 | $217.00/day |
How does a benefit period work?
Part A does not run on a calendar year. A benefit period begins the day you are admitted as an inpatient and ends when you have been out of a hospital or SNF for 60 consecutive days. A new admission after that gap starts a fresh benefit period and a fresh $1,736 deductible. There is no annual limit on the number of benefit periods.
Example: a patient admitted in January is discharged, stays out 70 days, then is readmitted in April. That is two benefit periods and two deductibles, totaling $3,472 for 2026, even though both stays fell in the same year.
How is Part A billed?
Facilities bill Part A on the institutional claim (UB-04 / 837I) to their Medicare Administrative Contractor, using DRG-based payment for inpatient hospital stays. This is distinct from the physician who rounds on that patient and bills professionally under Part B on the 837P. A biller working a hospital account must reconcile both streams.
- Confirm the qualifying 3-day inpatient stay before billing a SNF claim; observation days do not count.
- Watch coordination of benefits when the patient has employer coverage that makes Medicare secondary; see Medicare Secondary Payer.
- A Medigap policy typically covers the Part A deductible and coinsurance the patient would otherwise owe.
Frequently asked questions
For most people the monthly premium is $0 because they or a spouse paid Medicare payroll taxes for at least 40 quarters (10 years). It is not free at the point of service: the 2026 inpatient deductible is $1,736 per benefit period, plus daily coinsurance for long stays. People with fewer than 30 quarters pay a full monthly premium to buy in.
Part A is hospital insurance covering inpatient facility care, skilled nursing, hospice, and some home health. Part B is medical insurance covering physician services, outpatient care, and durable equipment. A single hospital stay usually generates both a Part A facility claim and Part B professional claims. See our Medicare Part B entry for the outpatient side.
Each benefit period covers up to 90 days: days 1–60 after the deductible with no coinsurance, days 61–90 at $434/day coinsurance in 2026. Beyond 90 days you tap 60 non-renewable lifetime reserve days at $868/day. After those are exhausted, the patient pays all costs.
Sources & further reading
Reviewed by the ImmediCare Solutions RCM team
Certified billers and coders handling claims across 50+ specialties nationwide. This entry is reviewed against current payer policy and CMS rules. Last review: Jul 5, 2026.
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