Medicare Explained:

When you turn 65, you become eligible for Medicare, lets break breakdown of the key parts of Medicare enrollment for someone turning 65:

Initial Enrollment Period (IEP)

This is the first time you can sign up for Medicare, and it last 7 months:

  • 3 months before your 65th birthday month and 3 months after your birthday (3+1+3).

For example, if your birthday is in June, your IEP runs from March 1 to September 30.


Medicare Parts

Medicare has four parts, and you may choose to enroll in all or some of them depending on your needs.


Part A (Hospital Insurance)

Covers inpatient hospital stays, skilled nursing facilities, hospice care, and some home health care.

  • Cost: $0 for most people

    • If you or your spouse worked and paid Medicare taxes for at least 10 years (40 quarters).

  • Enrollment: automatic, if you're receiving Social Security benefits before 65, but if not, you’ll need to sign up manually.

Part B (Medical Insurance)

Covers doctor's services, outpatient care, medical supplies, and preventive services.

  • Cost: monthly premium 

    • 2024: $174.70 

    • 2025: $185 but higher-income individuals pay more.

  • Enrollment: Optional, but many people sign up during their IEP. 

    • If you don’t sign up when you're first eligible, you could face a late enrollment penalty unless you qualify for a Special Enrollment Period (SEP).

Part C (Medicare Advantage Plans)

These are private health plans that cover the same services as Parts A and B, but may also offer extra benefits like vision, dental, and prescription drug coverage.

  • Cost: Varies depending on the plan, and you may still have to pay the Part B premium.

Part D (Prescription Drug Coverage)

Covers prescription medications only.

  • Cost: Monthly premiums vary depending on the plan you choose

  • Enrollment: It's optional, but like Part B, there can be a late enrollment penalty if you don’t sign up when first eligible and don’t have other credible drug coverage.


Medigap (Medicare Supplement Insurance)

You can also choose to buy a Medigap policy during your Medigap Open Enrollment Period, which is the 6-month period that starts the month you're both 65 and enrolled in Medicare Part B. Medigap helps pay some of the costs not covered by Original Medicare (Parts A and B), such as copayments, coinsurance, and deductibles. (80/20 rule)


How to Enroll in Medicare (Part A and B)

There are a few ways to enroll in Medicare:

If you're not receiving Social Security benefits, you'll need to apply for Medicare yourself through the Social Security Administration (SSA):