What does Medicare Part C (Medicare Advantage) replace?

Medicare Part C, commonly known as Medicare Advantage, is a type of health plan offered by private insurance companies that contracts with Medicare to provide all of a beneficiary's Part A and Part B benefits. Therefore, it effectively "replaces" or bundles the coverage provided by both Part A and Part B into a single plan.

Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care. Part B covers outpatient care, preventive services, and medically necessary services. When a beneficiary enrolls in a Medicare Advantage plan, they receive their Medicare services through that private insurance plan instead of through Original Medicare (which includes Parts A and B).

Part C does not replace Part D, which specifically covers prescription drugs. That means while a Medicare Advantage plan can include drug coverage, it does so in addition to the coverage for medical services provided by Parts A and B. Thus, the correct answer highlights the comprehensive nature of Medicare Advantage in covering both aspects of the original Medicare benefits.