Medicare 101: What You Need to Know

Nearly 1.5 million Americans are projected to enroll in Medicare this year.If you’re among them — or one of the millions of other new retirees expected to sign up by the end of this decade — you probably have questions.What types of coverage will you need? When’s the right time to enroll? What will Medicare cost?Medicare covers Americans 65 and older, and people receiving Social Security disability benefits.

You can also qualify if you have certain health conditions.The program consistently earns high marks from enrollees for its broad coverage that is guaranteed through a beneficiary’s life.The enrollment process, however, is complex.

While many think of Medicare as a single government program, Congress has incorporated private insurance options since the program was signed into law in 1965.Private insurers now sell Medicare Advantage plans, prescription drug plans and supplemental Medigap policies alongside the core federal program.

Enrollees must navigate online marketplaces, brokers and commission-earning agents — and some coverage decisions need to be revisited annually.Let’s walk through Medicare enrollment step by step, and consider the most important decisions you’ll need to make — and pitfalls to avoid.The basics: What are you signing up for?Medicare has two “parts” you will need to cover the basics.Part A covers hospitalizations, skilled nursing facility services, hospice care and some home health care.

Most people don’t pay a premium for Part A, since it is funded mainly by the Medicare payroll taxes we pay throughout our working years.Part B covers a wide range of preventive services, outpatient hospital and physician services, and drugs administered by doctors.

Many people are surprised to learn that Part B carries a monthly premium, according to Frederic Riccardi, president of the nonprofit Medicare Rights Center.“People often don’t understand how costly Medicare can be,” he said.Start at the Social Security Administ...