Medicare consists of several parts, each with different costs. Part A primarily covers hospital services and is free if you or your spouse paid Medicare taxes for at least 10 years. For those who don’t qualify, monthly premiums can reach several hundred dollars. Part B covers doctor visits and outpatient services, with a standard monthly premium in 2024 at $174.70, slightly up from 2023. Part D handles prescription drug costs, with monthly fees varying by plan; the average total premium for 2024 is around $55.50, showing a slight decrease.

Traditional Medicare beneficiaries often opt for Medigap supplemental insurance from private insurers to help cover deductibles, copayments, and other gaps. Medigap policies are categorized from A to N, with each lettered policy offering the same basic benefits but varying in cost.

You can opt for traditional Medicare (Parts A, B, and D) with Medigap supplement insurance, or choose Medicare Advantage (Part C), a comprehensive health plan offered by private insurers that often includes prescription drug coverage. Monthly fees for Medicare Advantage plans vary by plan, with an average of $18.50 in 2024.

Higher-income individuals pay more for Parts B and D. These costs are based on Adjusted Gross Income (AGI) from two years prior. In 2024, singles with AGI over $103,000 (joint filers over $206,000) pay additional premiums, depending on income levels.

If you’re receiving Social Security benefits, you’re automatically enrolled in Parts A and B. If not, you need to enroll in Parts A and B yourself. Initial enrollment spans seven months, beginning three months before your 65th birthday month and ending three months after. To ensure coverage starts at age 65, register within the initial three months.

Aside from initial enrollment, Medicare has other enrollment periods. January 1 to March 31 is the General Enrollment Period, allowing those who missed initial enrollment (and weren’t working) to enroll in Part B with a lifelong 10% penalty. October 15 to December 7 is the Open Enrollment Period, allowing changes to Part D or Medicare Advantage plans.

Since 2020, the Part D coverage gap (“donut hole”) has closed. In 2024, once you and your plan have paid $5,030 for drugs, you pay 25% of additional costs. Catastrophic coverage begins when out-of-pocket costs reach $8,000, with the government covering most expenses.

Medicare beneficiaries enjoy many free preventive services, including annual “wellness” visits, cardiovascular screenings every five years, annual flu shots, and screenings for cervical, prostate, and colon cancers.

Traditional Medicare’s restrictions on telehealth services have significantly eased, allowing patients to consult more healthcare professionals from home via smartphones. This change began during the COVID-19 pandemic and is now a permanent service.

While Medicare covers most medical expenses, it generally does not cover long-term care costs, such as help with daily activities (dressing, bathing, etc.). These expenses must be covered by your savings, long-term care insurance, or Medicaid. Traditional Medicare also does not cover routine dental or eye care, nor items like dentures or hearing aids.