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Medicare - Learn the Basics

Reviewed by Russell Noga, Licensed Medicare Insurance Broker (all 50 states) | Last updated October 8, 2026

Medicare is federal health insurance for people 65 and older and some younger people with disabilities, and it has four parts: A (hospital), B (medical), C (Medicare Advantage) and D (drugs).

Most people choose between two paths: Original Medicare with a Medigap plan and Part D, or a Medicare Advantage plan that bundles coverage. Original Medicare does not cover routine dental, vision, hearing aids or long-term custodial care.

See Medicare Advantage plans 2027, Medicare Supplement plans 2027 and Medicare Part D plans 2027.

✔ Licensed across all 50 states

✔ Built on CMS 2027 data

✔ No-cost plan comparison

Key Highlights

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Four parts: A, B, C and D.

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Two main paths.

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Part B: $202.90 in 2026.

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The Annual Enrollment Period is October 15 to December 7, 2026.

Compare plans and enroll online

The Four Parts of Medicare

Part What It Covers Typical Cost
Part A Hospital stays, skilled nursing, hospice, some home health Most people pay no premium; $1,736 deductible per benefit period in 2026
Part B Doctor visits, outpatient care, preventive services, equipment $202.90 a month and $283 deductible in 2026
Part C (Medicare Advantage) Private plans that replace A and B, usually with drugs Average about $12 a month for 2027
Part D Prescription drugs Deductible up to $700 and $2,400 cap in 2027

Your Two Main Choices

Path 1: Original Medicare

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Parts A and B from the government

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Add Medigap for gaps

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Add Part D for drugs

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Any provider that accepts Medicare

Path 2: Medicare Advantage

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A private plan replaces A and B

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Usually includes drugs

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May include dental and vision

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Networks and copays

Medicare Advantage Original Medicare + Medigap
Monthly premium Often low or $0 (2027 average $12, CMS) Higher; varies by plan letter, age and ZIP
Doctors Usually a network Any provider in the U.S. that accepts Medicare
Costs when you get care Copays and coinsurance up to a yearly maximum Low and predictable; on Plan G, little or nothing once the Part B deductible is met
Drug coverage Usually included Add a separate Part D plan
Dental, vision, hearing Many plans may include some coverage Not included
Changing later Every year during Annual Enrollment Health questions in most states once your Medigap Open Enrollment Period ends

Medicare, Understanding the Basics of Medicare

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What Original Medicare Does Not Cover

Original Medicare Does Not Cover

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Routine dental care

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Routine vision care and eyeglasses

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Hearing aids

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Long-term custodial care

Key Medicare Dates

Period Dates What You Can Do
Initial Enrollment Period 7 months around your 65th birthday month Sign up for Parts A and B
Medigap Open Enrollment 6 months from when you are 65+ and in Part B Buy Medigap without health questions
Annual Enrollment October 15 to December 7, 2026 Change MA or Part D plans for 2027
MA Open Enrollment January 1 to March 31, 2027 One change for MA members

How Medicare Advantage Works

Medicare Advantage, sometimes called Part C, lets you receive your Medicare benefits through a Medicare-approved private insurer. These plans cover everything Original Medicare Part A and Part B cover, with the exception of hospice care, which Original Medicare continues to pay for. Most also bundle Part D drug coverage, and many may tack on extras like routine dental, vision and hearing benefits.

The trade-off is that Medicare Advantage plans generally rely on doctor and hospital networks and may call for referrals or prior authorization for certain services. Each Medicare Advantage plan sets a yearly out-of-pocket maximum for covered medical care, something Original Medicare lacks. You still pay your Part B premium, along with the plan’s premium if there is one.

Feature HMO PPO
Out-of-network care Not covered except emergencies and urgent care Covered at a higher cost
Referrals for specialists Usually required Usually not required
Premiums Usually lower Usually higher
Out-of-pocket maximum In-network limit In-network limit plus a higher combined limit
Best for Lower costs, local care Flexibility, travel, keeping specific doctors

Medicare, Enrollment Periods and Eligibility

Help Paying Medicare Costs

When your income and savings are limited, two programs can greatly lower your Medicare costs:

Medicare Savings Programs

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Run by your state Medicaid office

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May cover your Part B premium, and in some cases deductibles and coinsurance

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Income and asset limits vary by state

Extra Help (Part D)

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Run by Social Security

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Lowers Part D premiums, deductibles and copays

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Those enrolled in a Medicare Savings Program qualify automatically

If you qualify for both Medicare and full Medicaid, you may also be able to join a Dual Special Needs Plan. See help for low-income Part D beneficiaries.

Enrollment Periods

Enrollment Period Dates What You Can Do
Annual Enrollment Period October 15 to December 7, 2026 Join, change or drop a Medicare Advantage or Part D plan effective January 1, 2027
Medicare Advantage Open Enrollment January 1 to March 31, 2027 In Medicare Advantage, you can change to another plan or go back to Original Medicare one time
Initial Enrollment Period 7 months around your 65th birthday month Sign up for Medicare and choose your first plan
Special Enrollment Periods Varies Switch plans after events such as a move, a loss of other coverage or your plan exiting your area

Annual Enrollment is when most people make changes. If you like your current plan, no action is needed; it renews on its own. Even so, review your Annual Notice of Change, since networks, premiums, copays and drug lists can all change on January 1.

Reading Your Annual Notice of Change

Check Every Line

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Your 2027 premium and deductible

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Doctor, specialist and hospital stay copays

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The out-of-pocket maximum

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Updates to your formulary, drug tiers and coverage rules

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Whether your doctors, hospitals and pharmacy stay in network

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Updates to dental, vision, hearing and other extras

The Annual Notice of Change must reach members by September 30. It is the most useful single document you receive each fall, since it spells out exactly how your plan will change on January 1.

Special Enrollment Periods

Outside of the fall and early-year windows, changing plans generally requires a Special Enrollment Period. Typical reasons include:

You May Qualify If

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Your plan is leaving your area or ending

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You move outside your plan’s service area

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You lose employer or union coverage

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Your Medicaid status changes, or you qualify for a Medicare Savings Program or Extra Help

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You want to join a 5-star plan, once a year

Every Special Enrollment Period has a separate time limit, so move as soon as the event occurs.

Prior Authorization and Referrals

Prior authorization is required by most Medicare Advantage plans for certain services, including some surgeries, advanced imaging, skilled nursing stays and some drugs. While your doctor usually submits the request, ask whether a scheduled service needs approval so you are not caught off guard by a denial.

You or your doctor can appeal a denied request. Medicare rules give plans deadlines for decisions, and those deadlines are shorter when a wait could seriously harm your health.

Emergency, Urgent and Out-of-Area Care

Emergency and urgent care are covered by every Medicare Advantage plan anywhere in the U.S., whether in or out of network, and an emergency does not require prior approval. Routine care while traveling is different: HMOs generally do not cover it, and PPOs cover out-of-network care at a higher cost.

If you’re away from home for months each year, ask every plan how it covers care where you stay. This is among the most frequent reasons people change plans partway through the year.

Appeals and Complaints

You have the right to appeal if your plan denies a service, a drug or payment for care. The denial notice from the plan explains the process. Appeals have several levels, beginning with the plan and moving on to independent reviewers.

If your issue isn’t about coverage, such as wait times or customer service, you can file a grievance with your plan. For help, you can also reach out to 1-800-MEDICARE or your State Health Insurance Assistance Program.

The 2027 Part B Premium

Of the major figures, only the Part B premium is not published alongside the plans. CMS typically announces it in November. Projections in the 2026 Medicare Trustees Report put the 2027 standard premium at about $209.50 a month and the deductible at about $292, up from $202.90 and $283 in 2026. You continue paying it even with Medicare Advantage.

If You Miss December 7

Miss the Annual Enrollment deadline and your current plan automatically renews for 2027, including the changes listed in your Annual Notice of Change. Medicare Advantage members get one more opportunity, from January 1 to March 31, 2027, to change Medicare Advantage plans or go back to Original Medicare and join a Part D plan.

Telehealth

Many Medicare Advantage plans may cover telehealth for some services, at times with a lower copay than an in-person office visit. It is handy for follow-ups and minor problems, but you still need to confirm that your regular doctors are in network.

Pros and Cons of Medicare Advantage

Advantages

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Often a low or $0 premium

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A yearly out-of-pocket maximum

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Drug coverage usually included

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Dental, vision and hearing benefits may be included in many plans

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One card and one plan

Tradeoffs

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Networks; except for emergencies, HMOs require in-network care

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Prior authorization and referrals are common

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Copays add up if you use a lot of care

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Plans and networks can change every year

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Moving to Medigap later may involve health questions

Special Needs Plans

Special Needs Plans (SNPs) are Medicare Advantage plans designed for particular groups. Their benefits, networks and drug lists are shaped around the members they serve, and many come with care coordinators. In 2027, SNPs are one of the few places large insurers are adding plans, even while cutting PPOs.

Type Who Qualifies What Is Different
Dual Special Needs Plan (D-SNP) People with both Medicare and Medicaid Coordinates both programs; costs are often very low, with extra benefits
Chronic Condition SNP (C-SNP) People who have qualifying conditions like diabetes, heart failure or chronic lung disease Doctors, drugs and programs designed around the condition
Institutional SNP (I-SNP) People who live in a nursing home or need that level of care at home Care delivered where the member lives

Getting Help

You do not need to compare plans by yourself, and help should not cost you anything. Here are the free options:

Free Help Comparing Plans

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Available any time: Medicare Plan Finder on Medicare.gov

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1-800-MEDICARE (1-800-633-4227), reachable 24 hours a day on all seven days of the week

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Your State Health Insurance Assistance Program (SHIP), which provides free, unbiased counseling

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A licensed agent or insurance broker, who can compare plans across several insurers for free

Gather your Medicare card, a list of your drugs and doses, your doctors and your preferred pharmacies before you call. That way a long conversation becomes a quick one.

Bottom Line

The Bottom Line

Learn the four parts, choose between Original Medicare with Medigap and Part D or Medicare Advantage, and use your enrollment windows to avoid penalties and health questions.

Compare plans and enroll online

Frequently Asked Questions

➤ What are the four parts of Medicare?

Part A covers hospital care, Part B covers doctor and outpatient care, Part C is Medicare Advantage, and Part D covers prescription drugs. Parts A and B together are called Original Medicare, and most people add drug coverage through Part D or a Medicare Advantage plan.

➤ Who is eligible for Medicare?

People 65 and older are generally eligible, along with some younger people who have received disability benefits for a set period or have certain conditions. Most people get Part A without a premium because they or a spouse paid Medicare taxes while working.

➤ What does Part A cost?

Most people pay no Part A premium. In 2026 the Part A deductible is $1,736 per benefit period, which you pay before Part A covers a hospital stay, and coinsurance can apply for longer stays.

➤ What does Original Medicare not cover?

Original Medicare does not cover routine dental care, routine vision care or eyeglasses, hearing aids, or long-term custodial care. Many Medicare Advantage plans may include some dental, vision and hearing benefits, but not all plans offer all benefits.

➤ Should I choose Original Medicare or Medicare Advantage?

Original Medicare with Medigap and Part D costs more each month but lets you see any provider that accepts Medicare with predictable costs. Medicare Advantage usually costs less up front but uses networks and copays up to a yearly maximum.

➤ When should I sign up for Medicare?

Sign up during your Initial Enrollment Period, the 7 months around the month you turn 65, unless you have qualifying employer coverage. Signing up late for Part B or Part D without other coverage can lead to lifelong penalties.

➤ What will Part B cost in 2027?

The 2026 Part B premium is $202.90 a month with a $283 deductible. The Medicare Trustees project about $209.50 and $292 for 2027, but the official amounts are announced in November, so treat those numbers as projections until then.

➤ What are the 2027 Part D drug cost limits?

For 2027 the maximum Part D deductible is $700, up from $615, and the out-of-pocket cap on covered drugs is $2,400, up from $2,100. Once you reach the cap, you pay nothing more for covered Part D drugs for the rest of 2027.

➤ When can I change Medicare Advantage plans for 2027?

You can change during Annual Enrollment, October 15 to December 7, 2026, and the new plan starts January 1, 2027. If you are already in a Medicare Advantage plan, the Medicare Advantage Open Enrollment Period, January 1 to March 31, 2027, also allows one change.

Have Questions?

Speak with a licensed insurance agent

1-833-641-4938

TTY users 711

Mon-Fri: 8am-9pm ET

Find & Compare Plans Online

Speak with a licensed insurance agent

1-833-641-4938TTY 711

Mon-Fri: 8am-9pm ET

ZRN Health & Financial Services, LLC, a Texas limited liability company

Russell Noga, licensed insurance agent
( Medicare Expert )

Russell Noga is the CEO of ZRN Health & Financial Services, and head content editor of several Medicare insurance online publications. He has over 15 years of experience as a licensed Medicare insurance broker helping Medicare beneficiaries learn about Medicare, Medicare Advantage Plans, Medigap insurance, and Medicare Part D prescription drug plans.