Medicare
The federal health insurance program for people 65 and older and some younger people with disabilities, made up of Parts A, B, C and D.
What it means
Medicare generally begins at 65. Part A covers hospital stays and is premium-free for most people with enough work history. Part B covers doctor visits and outpatient care and has a monthly premium. Part D covers prescription drugs through private plans. Part C, Medicare Advantage, is a private-plan alternative that bundles A, B and usually D, often with network rules. Many people with Original Medicare add a Medigap policy to cover gaps.
The initial enrollment window is seven months around the 65th birthday. Missing it without other qualifying coverage, such as an employer plan from current work, can mean late enrollment penalties that may last for life. Higher earners pay extra for Parts B and D based on income from two years earlier.
Example
For example, someone turning 65 in June has an initial enrollment window from March through September. If they skip Part B without qualifying coverage and sign up years later, they may pay a higher premium permanently.
How it’s used
- Planning health coverage for retirement
- Deciding whether to delay enrollment while still working
- Choosing between Original Medicare and Medicare Advantage
Good to know
- HSA contributions must stop once Medicare coverage begins, and Part A can start retroactively, so timing matters.
See it in the data: Medical care prices relative to inflation →
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Educational information only, not financial, tax or legal advice. Rules, limits and rates change; check the IRS, your lender or plan, or a qualified professional before acting.