Understanding Medicare
A comprehensive guide to the federal health insurance program for people who are 65 or older. Navigate Parts A, B, C, and D with confidence.
Select all statements that apply to see potential programs.
The Four Parts of Medicare
Medicare is divided into four distinct parts, each covering specific services. Understanding these is the first step to getting the right coverage.
Covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
- Usually premium-free if you paid Medicare taxes
- Has a deductible for each benefit period
Covers certain doctors' services, outpatient care, medical supplies, and preventive services.
- Requires a monthly premium
- Late enrollment penalties may apply
An alternative to Original Medicare offered by private companies approved by Medicare. Bundles Part A, B, and usually D.
- Often includes extra benefits (vision, dental)
- Restricted to provider networks
Helps cover the cost of prescription drugs. Offered by insurance companies and other private companies approved by Medicare.
- Optional coverage with monthly premiums
- Plans vary by formulary (drug list)
When to Enroll
Timing is critical. Missing your enrollment window can lead to lifetime penalties and gaps in coverage.
Initial Enrollment Period (IEP)
7-month window: 3 months before you turn 65, your birthday month, and 3 months after.
General Enrollment Period
January 1 – March 31 each year. Coverage starts the month after you sign up.
Annual Election Period (AEP)
October 15 – December 7. You can join, switch, or drop a Medicare Advantage or Part D plan.
Medigap (Supplement Insurance)
Original Medicare doesn't cover everything. Medigap policies are sold by private companies to fill "gaps" like copayments, coinsurance, and deductibles.
Key Rule:
The best time to buy a Medigap policy is during your 6-month Medigap Open Enrollment Period which starts the month you're 65 and enrolled in Part B. During this time, you can buy any policy sold in your state, even if you have health problems.