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For Medicare which most people get at the same time as Social Security. For informational purposes only. Not advice. See your own advisor before taking action or committing money to any company. TL;DR: Sign up for Part A when you turn 65. Check with your employer if you continue working to see if your medical plan is considered "Credible Coverage" for Medicare Purposes. If not Sign up for Parts B & D at 65 to avoid permanent (lifelong) penalty.


MEDICARE
Medicare is the Government provided healthcare system for seniors. It provides basic hospitalization, and can pay for doctor visits and drugs. There are two basic plans:
A,B,D (and sometimes a “supplement” plan to fill in the gaps in coverage). You have probably heard these called “Medigap” or “Donut Hole” insurance. And Part "C" or "Advantage Plans".

Part A-Everyone gets when they retire if they have worked 40 “3 month” periods and contributed to Social Security. Covers basic hospitalization. No charge to customer if they meet working criteria, otherwise $422 per month to private pay. 2021 has a $1484 deductible.
Part B- This covers doctor visits and some home health services. Basically anything not covered by Part A. In 2021 new enrollees $148.50 / month (individual income less than $85,000 per year.)
*Income over $85,000 per year (individual) premium is $187.50 / month.
With a $203 deductible.

Part D – this is the Drug plan brought in January 1, 2006. There is a plan premium based on provider plan 2020 average is $32.74.
*Maximum annual deductible for a plan is $445 (Many plans are lower).
*Part D covers drugs from deductible to $4020. After $4020 the person is in “The Donut Hole” where they pay a discounted rate (25%) until $6550. After $6550, the Catastrophic coverage picks up again.

Supplement or Medigap Plans- These private insurance policies cover all, or a portion of the costs not covered by Original Medicare A & B. Designated by letters A through N, each plan with a given letter will provide the same coverage no matter the insurance company through which it is provided. There is a difference in costs between companies. For example: Mary went on Medicare at 65 and chose Supplement Plan F through a magazine ad from a seniors’ membership organization and pays $205 per month. Mary got into a conversation with a licensed insurance agent who gave her a quote from a different well known company for $155 per month for the same plan. Mary would receive the EXACT same coverage and save $600 per year by switching.

Part C Plans: Known as “Advantage Plans”. These are HMO or Preferred Provider Plans which contain Hospitalization, Physician services and Drug coverage. They tend to be less expensive initially than A,B,D plans but tend to have more limited services, or higher co-pays and annual out of pocket expenses of up to $6700.

People can switch between A,B,D and Advantage plans during the annual open enrollment period. BUT THERE IS A BIG CAUTIONARY POINT!!!
Initial choice of plans bases the customers costs on the average health condition of the whole group of 65 year old’s. Switching to another plan (usually people want to go from Advantage to A,B,D) is based on the person’s specific health criteria. MOST PEOPLE WANT TO SWITCH WHEN THEY WANT MORE COVERAGE BECAUSE THEIR HEALTH IS DECLINING and they realize they will have high out of pocket costs.
It is generally too expensive to switch at that time or the cannot qualify for the Supplement (i.e. they can't pass underwriting)

Medigap (Supplement) Plans: 10 plans. Plan G is the most comprehensive and most popular. Costs between $175-$425 per month. Fills in gaps or extends coverage for Parts A,B,D coverage.