15 Things You Need to Know About Medicare

A lot of people have Medicare on the brain right now because open enrollment is in full swing. But how much do you really know about this key healthcare program? Here are some important things to be aware of.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Medicare coverage kicks in at 65, but your initial enrollment period starts three months before the month of your 65th birthday and ends three months after that month. All told, you get seven months to sign up for benefits for the first time.

ALSO READ: 4 Medicare Secrets That Could Ruin Your Retirement

Medicare has several parts that come together to provide comprehensive coverage. Part A covers hospital care, Part B covers outpatient care, and Part D covers prescription drugs.

Most Medicare enrollees are entitled to Part A coverage at no cost. But that doesn't mean there's no cost sharing for hospital care -- it just means they're not charged a monthly premium for Part A.

Though Medicare Part A is free, enrollees are charged a premium for Part B. Right now, the standard premium is $148.50 a month, but that number can change from year to year.

ALSO READ: Already on Medicare? You Should Still Shop Around During Open Enrollment

Original Medicare (parts A and B) won't cover prescriptions, so to that end, you'll need to sign up for a Part D plan. The monthly premium you pay for Part D will hinge on the specific plan you choose.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Many seniors are shocked to learn that original Medicare won't pay for a number of essential health services. These include dental care, eye exams, and hearing aids.

Medicare Advantage, also known as Part C, is an all-in-one health coverage option that's available as an alternative to original Medicare. One benefit to choosing an Advantage plan is that you'll generally be covered for a number of key services that original Medicare won't pay for, like dental, vision, and hearing services.

ALSO READ: Enrolling in Medicare Advantage for the First Time? 3 Things You Need to Know

When you sign up for Medicare Advantage, you're limited to a specific network of providers. Depending on where you live and the plan you choose, you may have a hard time finding in-network doctors and pharmacies, or you may have to drive a longer distance to access them.

Each fall, Medicare has an open enrollment period for existing beneficiaries that starts on Oct. 15 and runs through Dec. 7. During this time, you can make changes to your coverage for the upcoming year, like changing from one Part D plan to another.

You may decide to get a new Medicare Advantage plan during open enrollment. But if you wind up unhappy with your new plan, you're not stuck with it for a full year. That's because Medicare Advantage enrollees are entitled to a special period during which they can switch Advantage plans or drop Advantage altogether. That period runs from Jan. 1 through March 31.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Signing up late for Medicare could mean going without coverage and risking costly medical bills. But that's not all. If you delay your Part B enrollment for too long, you'll face a 10% surcharge on those premiums for each 12-month period you were entitled to coverage but didn't sign up for it.

ALSO READ: 4 Things to Look For in a Medicare Advantage Plan This Year

Eligibility for Medicare is based on age, not financial need. Even if you're still earning a paycheck at work, you can still enroll in Medicare.

The penalty we just talked about for signing up late for Part B? It won't apply as quickly if, come age 65, you're still covered by an employer health plan with 20 participants or more. If that's the case, you'll have eight months from the time your coverage under that plan ends to sign up for Part B without penalty.

If you're collecting Social Security, your Part B premiums will be deducted automatically from the benefits you receive. You won't have to worry about writing out a check every month.

ALSO READ: Gear Up for These Big Social Security Changes in 2022

Medicare eligibility starts before full retirement age for Social Security purposes kicks in. Full retirement age is when you can receive your monthly Social Security benefit in full. You're allowed to sign up for Social Security earlier, but that will reduce your benefits. Therefore, not only are you allowed to enroll in Medicare before Social Security but that could be a smart financial move.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

The more you know about Medicare, the better positioned you'll be to take care of your health during retirement. Keep reading up on the program so you can make the most of it once you're eligible for it.

The Motley Fool has a disclosure policy.