Overview of Medicare
What Medicare is, who qualifies, and how the four parts work together to cover your healthcare.
What Is Medicare?
Medicare is the federal health insurance program primarily for people 65 or older, though it also covers certain younger people with disabilities and those with End-Stage Renal Disease (ESRD).
It was signed into law in 1965 and today covers more than 65 million Americans. Understanding how it works is one of the most important financial decisions you'll make as you approach retirement.
💡 Medicare is NOT free. Most people pay premiums, deductibles, and copays — understanding the costs is just as important as understanding the coverage.
The Four Parts of Medicare
Medicare is divided into four parts, each covering different services:
- Part A — Hospital Insurance: Covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people don't pay a monthly premium for Part A if they've worked and paid Medicare taxes for at least 10 years.
- Part B — Medical Insurance: Covers doctor visits, outpatient care, preventive services, and medical equipment. The standard premium in 2026 is $202.90/month, though higher earners pay more (IRMAA).
- Part C — Medicare Advantage: An alternative way to get your Medicare benefits through a private insurance company. We cover this in detail in Module 2.
- Part D — Prescription Drug Coverage: Helps cover the cost of prescription drugs. Covered in detail in Module 4.
Original Medicare vs. Medicare Advantage
One of the first decisions you'll face is whether to stay on Original Medicare (Parts A and B, plus an optional Part D and Medigap supplement) or enroll in a Medicare Advantage plan (Part C).
This is the single most important decision in your Medicare journey — and it's one that many people make without fully understanding the tradeoffs. We'll break both down in the following modules.
When Frank D. came to me, he was three weeks from turning 65 with a kitchen table buried in plan mailers — 40+ pieces of mail, six agents calling, and no idea that "Medicare Advantage" and "Medicare Supplement" were completely different things. We sorted his entire situation in one 20-minute call. He told me afterward the worst part wasn't the decision — it was the six months he spent dreading it.
Client stories reflect real situations from Matt's practice. Names and identifying details are changed for privacy.
💡 Not sure which path fits you? That's the exact question Matt answers every day. A quick call now beats a year locked into the wrong plan — and it costs you nothing.
Who Qualifies?
- Age 65 or older (U.S. citizen or permanent legal resident for at least 5 consecutive years)
- Under 65 with certain disabilities after receiving Social Security disability benefits for 24 months
- Any age with End-Stage Renal Disease (ESRD) or ALS
When Does Coverage Begin?
Your Initial Enrollment Period (IEP) begins 3 months before your 65th birthday month and ends 3 months after. We go deep on all enrollment periods in Module 5.
⚠️ Missing your enrollment window can result in permanent late enrollment penalties on your monthly premiums. Don't wait — understand your dates now.
Prefer to watch?
Matt covers everything in this module on video:
Which Path Is Right for You?
You now know the four parts. The real question is which combination fits your doctors, your medications, and your budget — and that's a 10-minute phone conversation, not a guess.
📞 Call or Text Matt: (248) 895-6656 Have Matt Call You Instead →