Last Updated: December 19, 2024

The good news for those turning 65 is the fact you're finally eligible for Medicare, or the federally run health insurance plan for the retired. There are three main components of Medicare you should know about:¹

• Original Medicare: This comprises both Medicare Parts A and B. Medicare Part A, which is hospital insurance, covers inpatient hospital care, skilled nursing facility care, hospice care and more. Medicare Part B is the medical insurance part of Medicare. This coverage applies to some doctor's visits, medical supplies, outpatient care, preventative services and more.
• Medicare Part D and Medigap: These are “a la carte” plans or supplemental coverage to Original Medicare. Medicare Part D covers prescription drugs, and Medigap, which you can think of as coverage for “miscellaneous” expenses like deductibles and coinsurance payments. Medicare Part D can also cover required or recommended shots and vaccines. 
• Medicare Advantage: This is an all-in-one solution that gives you the full scope of coverage offered by Original Medicare and Part D. Note that Medicare Advantage typically has more limitations on your choice of doctors.

Most people do not pay a premium for Medicare Part A, although you may pay up to $518 per month for Medicare Part A if you haven’t paid Medicare taxes while working. Meanwhile, everyone pays a premium for Medicare Part B. In 2025, the standard Part B premium amount is $185 per month.²

As a side note, you may have heard of Medicare Advantage, which is an "all in one" alternative to regular Medicare. If you opt for Medicare Advantage, you'll be able to purchase a bundle of services and coverage that includes Part A, Part B and potentially Part D. Some Medicare Advantage plans also cover "extras" like dental and vision. 

While you can delay enrolling in Medicare at the age of 65 if you have other coverage, this is usually not the best move, particularly when it comes to Part A. Most people have paid enough toward Medicare taxes so they will not be charged a premium for Part A, so there is no reason to delay.

However, there are times it can make sense to delay enrolling in part B. For example, if you have health insurance for medical care separately through your job or a spouse, it can make sense to maintain that coverage and delay paying for Part B of Medicare until you're ready. Just be sure to understand the rules and see if it makes financial sense to delay: you’ll pay a life-long penalty (yes, you read that correctly) if you avoid signing up on time.³

Get a better understanding of Medicare by reading all of the classes in our Medicare Retirement School course. 

SOURCES

1. “What’s Medicare?” Medicare.gov. https://www.medicare.gov/what-medicare-covers/your-medicare-coverage-choices/whats-medicare. Accessed 1 December 2024.
2. “2025 Medicare Parts A & B Premiums and Deductibles.” CMS.gov, 8 November 2024, https://www.cms.gov/newsroom/fact-sheets/2025-medicare-parts-b-premiums-and-deductibless. Accessed 1 December 2024.
3. “Employer Community.” CMS.gov, 6 September 2023. https://www.cms.gov/Outreach-and-Education/Find-Your-Provider-Type/Employers-and-Unions/Employer-community. Accessed 1 December 2024.