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Medicare 101

Your complete, plain-English Medicare guide

New to Medicare? Start here. Medicare has four parts — A, B, C, and D. Below are the basics, then dig into any topic.

Part A — Hospital

Inpatient hospital, skilled nursing, hospice. Usually premium-free if you worked 10+ years.

Part B — Medical

Doctor visits, outpatient care, preventive services. Monthly premium set by income.

Part C — Advantage

A private all-in-one alternative bundling A, B, and usually D, often with extras.

Part D — Drugs

Prescription drug coverage, with a 2026 out-of-pocket cap of about $2,100.

Getting-started questions

Is Medicare free?

Part A is usually premium-free if you or your spouse paid Medicare taxes for at least 10 years. Part B costs $202.90 a month for most people in 2026, more if you owe IRMAA. Medicare Advantage and Part D plans have their own premiums, and some Advantage plans charge $0 — which is not the same as free.

Is Medicare the same as Medicaid?

No. Medicare is federal health insurance based mainly on age or disability. Medicaid is a joint federal-state program based on income and resources. Some people qualify for both — they're called dual-eligible, and they often qualify for a Special Needs Plan.

Do I have to take Medicare at 65?

Not if you have qualifying coverage from active employment — you can delay Part B and Part D without penalty and get a Special Enrollment Period later. Retiree coverage, COBRA, and marketplace plans do not count for this purpose, and getting that wrong is expensive.

What's the difference between Medicare Advantage and Medigap?

Medicare Advantage replaces how you get Original Medicare, using a network and copays, usually with drugs and extras bundled in. Medigap works alongside Original Medicare to pay your share, with no networks, and needs a separate Part D plan.

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Content reviewed by Brian Penner, Independent Medicare advisor — no pressure.