The four parts of Medicare
| Part | What it covers | 2026 cost basics |
|---|---|---|
| A – Hospital insurance | Inpatient hospital stays, skilled nursing facility care, hospice, some home health | No premium for 99% of people; $1,736 deductible per benefit period |
| B – Medical insurance | Doctor visits, outpatient care, preventive services, medical equipment | $202.90 a month; $283 deductible; then usually 20% coinsurance |
| C – Medicare Advantage | Private plans that combine A and B, usually with drug cover and extras | Average premium about $14 a month in 2026; you still pay Part B |
| D – Prescription drugs | Outpatient prescription drugs through private plans | Premiums vary; out-of-pocket cap of $2,100 in 2026 |
Sources: Medicare.gov; CMS. Higher-income beneficiaries pay more for Parts B and D.
Original Medicare has no yearly limit on out-of-pocket costs, which is why most people add other cover. Our Medicare costs guide has full figures.
Two ways to get Medicare
| Original Medicare + Part D + Medigap | Medicare Advantage |
|---|---|
| See any doctor who accepts Medicare nationwide | Usually a network (HMO or PPO) |
| Medigap covers most out-of-pocket costs | Annual in-network out-of-pocket limit (max $9,250 in 2026) |
| Higher monthly premiums | Low or $0 extra premium for many plans |
| Little or no prior authorization | Prior authorization common |
| No routine dental, vision or hearing | Most plans include some dental, vision and hearing |
See our full comparison of Medicare Advantage vs. Original Medicare.
What’s changing for 2027
- Medicare Advantage premiums: CMS projects the average will fall from $14.37 to about $12 a month.
- Fewer plans: about 3.2 million people in individual Medicare Advantage plans must choose new cover because their plans are ending, and KFF estimates 638,000 people in nearly 200 counties will have no Medicare Advantage plan.
- Higher cost-sharing: the average in-network out-of-pocket limit is expected to rise about 9% to $6,603.
- Part D: the out-of-pocket cap rises to $2,400 and the standard deductible to $700. KFF found no stand-alone drug plan will have a $0 premium for people without Extra Help.
- Part B: the 2027 premium hadn’t been announced as of mid-October; the Medicare trustees projected $209.50.
Key dates
- Initial Enrollment Period: seven months around your 65th birthday.
- Open Enrollment: October 15 to December 7 each year, for changes starting January 1.
- Medicare Advantage Open Enrollment: January 1 to March 31, for people already in a Medicare Advantage plan.
Our enrollment guide explains deadlines and late penalties.
Get free, unbiased help
Every state has a State Health Insurance Assistance Program (SHIP) offering free, unbiased Medicare counseling; call 1-877-839-2675 or visit shiphelp.org. Be cautious with unsolicited calls: agents may not call you without permission or visit your home uninvited.
All Medicare insurance guides
Frequently asked questions
When is Medicare open enrollment for 2027?
October 15 to December 7, 2026. Changes take effect January 1, 2027.
How much is Medicare Part B in 2026?
The standard premium is $202.90 a month with a $283 annual deductible. Higher-income people pay more.
Do I need to re-enroll in Medicare every year?
No. If you’re happy with your plan and it’s still offered, you’re renewed automatically. Still, review the plan’s annual notice of changes.
Is Medicare Advantage better than Original Medicare?
Neither is better for everyone. Medicare Advantage often costs less upfront and adds extras; Original Medicare with Medigap offers wider choice of doctors and more predictable costs.
Does Medicare cover dental?
Original Medicare doesn’t cover routine dental care such as cleanings, fillings or dentures. Most Medicare Advantage plans include some dental benefits.
Sources
- Medicare.gov – Medicare costs
- CMS – 2026 Medicare Parts A & B premiums and deductibles
- CMS – Medicare Advantage and Part D expected to remain stable in 2027 (Sept 2026)
- Straight Arrow News – Medicare open enrollment begins with fewer plans (Oct 2026)
- KFF – Medicare Advantage in 2026
- KFF – Medicare Advantage fact sheet
- Medicare.gov – Joining a health or drug plan
- AARP – 2027 Part B premium projection (Oct 2026)
- Becker’s Hospital Review – CMS final 2027 rate announcement
- NCOA – State Health Insurance Assistance Program (SHIP)
- Medicare Rights Center – Marketing rules for Medicare plans
- Medicare.gov – Dental services
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.