Hospital Insurance
Inpatient hospital stays, skilled nursing, hospice
Monthly Cost: $0 for most people
Medical Insurance
Doctor visits, outpatient care, preventive services
Monthly Cost: $185.00/month (2026)
Medicare Advantage
All-in-one alternative offered by private insurers
Monthly Cost: Varies by plan
Drug Coverage
Prescription drug coverage
Monthly Cost: Varies by plan
When Can You Enroll in Medicare?
Most people become eligible for Medicare at age 65. Your Initial Enrollment Period (IEP) begins 3 months before your 65th birthday, includes your birthday month, and ends 3 months after — a 7-month window total. If you miss this window without qualifying for a Special Enrollment Period, you may face lifetime premium penalties. If you are still covered by employer health insurance at 65, you can delay enrollment without penalty.
Medicare Part A — Hospital Insurance
Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. Most people do not pay a monthly premium for Part A if they or their spouse worked and paid Medicare taxes for at least 10 years (40 quarters). In 2026, the Part A deductible is $1,676 per benefit period for hospital stays.
Medicare Part B — Medical Insurance
Part B covers doctor visits, outpatient care, preventive services, and medical equipment. The standard 2026 premium is $185.00 per month, deducted automatically from your Social Security check. Higher-income enrollees pay more through IRMAA surcharges. The 2026 annual deductible is $257. After meeting the deductible, you typically pay 20% of the Medicare-approved amount for most services.
Medicare Part C — Medicare Advantage
Medicare Advantage plans are offered by private insurance companies approved by Medicare. They combine Part A and Part B coverage and often include Part D drug coverage and additional benefits like dental, vision, and hearing. In 2026, over 33 million Americans are enrolled in Medicare Advantage. Premiums vary widely — some plans have $0 premiums — but networks are more restricted than Original Medicare.
Medicare Part D — Prescription Drug Coverage
Part D provides prescription drug coverage through private insurance companies. You can add Part D to Original Medicare (Parts A and B), or get it bundled with a Medicare Advantage plan. The 2026 standard deductible is up to $590. If you do not enroll in Part D when first eligible and do not have creditable drug coverage, you may face a lifetime late enrollment penalty.
The Medicare Savings Programs
If you have limited income and assets, you may qualify for Medicare Savings Programs that help pay your premiums, deductibles, and copayments. There are four levels of assistance depending on your income. Contact your state Medicaid office or call 1-800-MEDICARE to see if you qualify.
2026 Medicare Costs at a Glance
Part A premium: $0 for most people. Part A deductible: $1,676 per benefit period. Part B premium: $185.00 per month standard. Part B deductible: $257 per year. Part D deductible: up to $590 per year. Out-of-pocket maximum for Medicare Advantage: $9,350 in-network (2026 limit).
Key Takeaways
Medicare is complex but manageable once you understand the four parts. The most important action is enrolling on time during your Initial Enrollment Period to avoid lifetime penalties. Use our Medicare Cost Estimator to see what you will pay based on your income.