Understanding How Medicare Works After You Retire

Medicare is a federal health insurance program primarily for people aged 65 and older, though it also covers certain younger individuals with disabilities. It consists of several parts, each designed to cover specific healthcare services:

• Part A (hospital insurance) covers inpatient hospital stays, care in a skilled nursing facility, hospice care and some home health care.

• Part B (medical insurance) covers certain doctors’ services, outpatient care, medical supplies and preventive services.

• Part C (Medicare Advantage plans) is an alternative to Original Medicare (parts A and B) offered by private companies approved by Medicare. They often include additional benefits like vision, hearing and dental coverage.

• Part D (prescription drug coverage) helps cover the cost of prescription drugs.

Enrollment and Timing

Most people become eligible for Medicare at age 65. The Initial Enrollment Period (IEP) begins three months before your 65th birthday, includes the month you turn 65, and ends three months after. Enrolling during this period helps avoid late enrollment penalties.

Costs and Coverage

While Part A is typically premium-free if you or your spouse paid Medicare taxes while working, Part B requires a monthly premium. The cost of Part B can vary based on your income. Medicare Advantage (Part C) and Part D plans also have their own premiums, deductibles and copayments, which can vary widely.

Medigap Supplemental Insurance

Medicare doesn’t cover all healthcare costs. Many retirees opt for Medigap, a supplemental insurance policy sold by private companies to cover expenses like copayments, coinsurance and deductibles that Original Medicare doesn’t cover. Medigap policies are standardized and labeled A through N, each offering different levels of coverage.

Contact Us

Contact Medicare Line to learn about your Medicare options and get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.