New to Medicare? Start here

The short version

Original Medicare (Parts A and B) is run by the federal government and covers hospital and medical care. It doesn’t cover everything, and it has no yearly cap on what you pay. Most people add coverage on top of it in one of two ways:

• Original Medicare + a Supplement + a Part D drug plan. Freedom to see any provider that accepts Medicare, with predictable costs.
• A Medicare Advantage plan. An all-in-one private plan, often with drug coverage and extras, that usually uses a network.

What to decide first

Start with your doctors and your prescriptions. Whether your providers are in a plan’s network, and how your medications are covered, narrows the choices quickly. Budget comes next: the monthly premium and what you would spend if you had a hospital stay.

Terms you’ll hear

• Premium: what you pay each month to have the coverage.
• Deductible: what you pay before the plan starts paying.
• Copay and coinsurance: your share of a visit or service, as a flat amount or a percentage.
• Formulary: a drug plan’s list of covered medications.
• Maximum out-of-pocket: the most you would pay for covered care in a year in a Medicare Advantage plan.

See the full breakdown on our Medicare Plans page.