Medicare 101

Medicare, explained in plain language

Turning 65 or retiring soon? Here's how Medicare works, what each part covers, and the dates you need to know so you can choose coverage with confidence.

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The basics

The four parts of Medicare

Medicare is federal health insurance for people 65 and older, and for some younger people with certain disabilities or conditions. It's divided into parts, each covering different kinds of care.

AHospital insurance

Inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people pay no premium for Part A.

BMedical insurance

Doctor visits, outpatient care, lab work, preventive services, and medical equipment. Part B has a monthly premium.

CMedicare Advantage

Plans from private insurers approved by Medicare that combine Parts A and B, and often Part D and extra benefits like dental or vision.

DPrescription drugs

Coverage for prescription medications, offered through private plans as a stand-alone plan or built into a Medicare Advantage plan.

Your choice

Two main paths

Most people choose between Original Medicare (often with a Medicare Supplement) and a Medicare Advantage plan. Each works well for different needs.

Original Medicare + SupplementMedicare Advantage
Doctors & hospitalsAny provider nationwide that accepts MedicareUsually a plan network (HMO or PPO)
Drug coverageAdd a separate Part D planOften included
Out-of-pocket costsA Supplement (Medigap) can cover most gaps; higher monthly premiumCopays and coinsurance with a yearly out-of-pocket maximum; premiums are often lower
Extra benefitsGenerally not includedMany plans include dental, vision, hearing, or fitness benefits
ReferralsNot requiredSome plans require them
Timing matters

Key enrollment periods

  1. Around age 65

    Initial Enrollment Period

    A 7-month window: the 3 months before your 65th birthday month, your birthday month, and the 3 months after.

  2. Oct 15 – Dec 7

    Annual Enrollment Period

    Switch between Original Medicare and Medicare Advantage, change plans, or join or change a drug plan. Changes start January 1.

  3. Dec 8, 2026 – Feb 28, 2027

    If your Medicare Advantage plan is ending

    If your plan won't continue in 2027, you can choose a new Medicare Advantage plan, or return to Original Medicare and add a drug plan. You may also have a guaranteed right to buy certain Medicare Supplement plans.

  4. Jan 1 – Mar 31

    Medicare Advantage Open Enrollment

    If you're in a Medicare Advantage plan, you can switch to another one or return to Original Medicare once.

  5. Jan 1 – Mar 31

    General Enrollment Period

    If you missed your initial window, you can sign up for Part A or Part B. Late penalties may apply.

  6. Anytime, if eligible

    Special Enrollment Periods

    Life events such as retiring and losing employer coverage, moving, or qualifying for extra help can open a window to enroll or change plans.

Avoid late penalties. If you don't sign up for Part B or Part D when you're first eligible and don't have other qualifying coverage, you may pay a higher premium for as long as you have Medicare.
For 2027

What's changing next year

$2,400

Annual cap on out-of-pocket costs for covered Part D drugs, up from $2,100 in 2026.

$700

Maximum standard Part D deductible, up from $615.

15 drugs

Gain new Medicare-negotiated prices on January 1, including several diabetes medications.

Plans change their costs, networks, and benefits every year. Reviewing your coverage during the Annual Enrollment Period helps make sure it still fits your doctors, prescriptions, and budget.

Get ready

What to have on hand

  • Your red, white, and blue Medicare card (or Social Security information if you're new)
  • A list of your doctors, hospitals, and pharmacies
  • A list of your prescriptions with dosages
  • Information about any current or retiree coverage from an employer

Have questions? Let's talk.

As a licensed local agent, I'll walk you through your options one-on-one, at no cost and with no obligation. I can help with first-time enrollment, plan reviews, and planning your coverage as you transition into retirement.

Phillip Dunson · Health Plan Superstore · 216-238-7266

Call 216-238-7266 to schedule