Medicare
A federal health insurance program primarily for individuals aged 65 and older, as well as some younger people with disabilities and those with end-stage renal disease.
Original Medicare
Part A (Hospital Insurance)
- Covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care
- No premium if you or spouse paid Medicare taxes while working
- 2025 inpatient hospital deductible: $1,676 per benefit period
Part B (Medical Insurance)
- Covers doctors' services, outpatient care, medical supplies, and preventive services
- 2025 monthly premium: $185.00
- Annual deductible: $257
Medicare Part C (Medicare Advantage)
- Includes all benefits of Parts A and B, often Part D, and additional benefits
- 2025 average premium dropping to $17.00 from $18.23 in 2024
- Many plans have $0 premium in addition to Part B premium
- Vision, dental, and hearing benefits almost universally offered
Medicare Part D (Prescription Drug Coverage)
- Optional coverage to help pay for medications
- 2025: $2,000 cap on out-of-pocket costs for prescription drugs
- Elimination of the "donut hole"
Medicare Supplement Insurance (Medigap)
These policies help pay some of the health care costs that Original Medicare doesn’t cover, like copayments, coinsurance, and deductibles. Policies are standardized and work only with Original Medicare.
Changes in 2025
Fewer Medicare Advantage plans available, with some plans adjusting their offerings in terms of benefits and provider networks. Reduction in Part D plan options noted.
Income-Related Monthly Adjustment Amounts (IRMAA)
Higher-income beneficiaries (roughly 8% of enrollees) may see increased premiums for Part B and Part D based on income.
Annual Enrollment Period
October 15 to December 7 annually – beneficiaries can change Medicare health plans and prescription drug coverage for the next year.