Medicare 101

Medicare, explained
simply.

No jargon, no alphabet soup — just clear answers about what Medicare is, who qualifies, when to enroll, and how to make the most of it.

the basics —

What is Medicare?

Medicare is a federal health insurance program primarily for people 65 and older. It also covers certain younger people with disabilities or specific health conditions. It's made up of four parts — each covering different types of care.

Part A

Hospital Insurance

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

Part B

Medical Insurance

Covers outpatient care, doctor visits, preventive services, and medical equipment and supplies.

Part C

Medicare Advantage

An all-in-one alternative to Original Medicare offered by private insurers. Often includes Parts A, B, and D — plus extras like dental, vision, and hearing.

Part D

Prescription Drug Coverage

Helps cover the cost of prescription medications. Available through private insurers as a stand-alone plan or bundled with Medicare Advantage.

Medigap (Medicare Supplement Insurance) is a separate private policy that helps cover out-of-pocket costs — like copayments, coinsurance, and deductibles — that Original Medicare doesn't pay.

who qualifies —

Eligibility

Most people become eligible at 65, but there are other qualifying conditions too.

Age 65+

U.S. citizens or permanent residents who have lived in the country for at least 5 consecutive years are generally eligible when they turn 65.

Disability

Under 65? If you've received disability benefits from Social Security or the Railroad Retirement Board for 24 consecutive months, you qualify.

ESRD

End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant) qualifies you for Medicare at any age.

ALS

Amyotrophic Lateral Sclerosis (Lou Gehrig's disease) qualifies you for Medicare from the first month you receive disability benefits.

when to sign up —

Enrollment Periods

Timing matters. Missing the right window can mean penalties or gaps in coverage.

Initial Enrollment Period (IEP)

A 7-month window: the 3 months before your 65th birthday month, your birthday month itself, and the 3 months after. This is the ideal time to enroll in Parts A and B.

Annual Enrollment Period (AEP)

October 15 – December 7 every year. During this window you can switch, join, or drop a Medicare Advantage or Part D plan. Changes take effect January 1.

Special Enrollment Periods (SEP)

Available in specific situations — like losing employer coverage, moving out of your plan's service area, or qualifying for a low-income subsidy. Call us if you think you may qualify.

Open Enrollment Period (OEP)

January 1 – March 31 each year. If you're already enrolled in a Medicare Advantage plan, you can switch to another MA plan or return to Original Medicare once during this period.

what you'll pay —

Cost Overview

Medicare is not free — but for many people, Part A costs nothing. Here's a general breakdown:

PartTypical PremiumNotes
Part A Often $0 Premium-free if you or your spouse paid Medicare taxes for at least 10 years. Otherwise a premium applies.
Part B Starts ~$185/mo Monthly premium required. Amount may vary based on income (IRMAA surcharge for higher earners).
Part C (MA) Varies by plan Many plans have $0 premium. May include extra benefits not in Original Medicare.
Part D Varies by plan Stand-alone drug coverage has monthly premiums. Extra Help (LIS) can reduce costs significantly.
Medigap Varies widely Supplement insurance to cover gaps. Premiums depend on plan type, location, and age.

Cost looks different for everyone. Our agents can show you exactly what you'd pay — and find every savings program you're eligible for, including Medicaid and Extra Help (LIS).

let's clear this up —

Common Myths

There's a lot of confusion about Medicare. Here are the most common myths — and the truth.

Myth

Medicare is free. You don't have to pay anything once you turn 65.

Fact

Part A is often premium-free, but Part B, Part C, and Part D have monthly premiums, plus deductibles and copayments. Many people qualify for assistance programs that reduce those costs significantly.

Myth

Medicare covers everything. Dental, vision, and hearing are all included.

Fact

Original Medicare does not cover most dental care, routine vision exams, or hearing aids. Many Medicare Advantage (Part C) plans do include these benefits — which is one reason they're popular.

Myth

Medicare Advantage and Medigap are the same thing.

Fact

They're very different. Medicare Advantage (Part C) replaces Original Medicare. Medigap (Medicare Supplement) works alongside Original Medicare to help cover its out-of-pocket costs. You can't have both at the same time.

Myth

You can enroll anytime after 65 without penalty.

Fact

If you miss your Initial Enrollment Period and don't have qualifying other coverage, you could face late enrollment penalties for Part B and Part D that last for as long as you have Medicare.

Myth

Drug coverage is automatic. I don't need to sign up for Part D separately.

Fact

Prescription drug coverage (Part D) is optional and must be added separately. If you don't enroll when first eligible and go without creditable drug coverage, you may pay a late enrollment penalty later.

what now? —

Next Steps

Medicare doesn't have to be complicated. An SBHIS agent will sit with you, review your situation, and recommend the plan that truly fits — at no cost to you.

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still have questions?

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