Imagine that you’re at a small dinner party with friends. It’s a happy occasion, perhaps celebrating a milestone birthday or commemorating your retirement.

You’ve mingled over a fabulous charcuterie board and a nice glass of red wine, and now it’s time to sit down for the main event. Everyone takes their seats, and the conversation continues. But suddenly, you can’t focus. Why? Your chair is wobbly. It’s that special kind of agony that’s impossible for you to ignore, but no one else notices. Every time you take a bite or reach for your glass, you’re teetering back and forth. You’re not one to make a big deal out of something small in someone else’s home, but you’re not comfortable at what should be a happy and stress-free occasion.

Medicare can feel like that wobbly dinner party chair. You may have every other element of your retirement properly planned for but if your age 65+ health insurance coverage isn’t carefully organized, it can create that same sense of persistent discomfort. Don’t teeter. Read on to learn more about the Medicare chair and its four legs.

What is Medicare?

Medicare is an individual health care coverage benefit that covers American adults age 65 and older. (Additionally, if an applicant meets certain conditions, some disabled adults can become eligible for Medicare before age 65). This is a change for many adults who may have had family health insurance coverage through an employer in their working years. For a married couple who are both age 65+, each spouse will have his or her own individual Medicare insurance coverage rather than family coverage.

The Four Chair Legs of Medicare

1. Part A – Hospital Coverage

Coverage: Part A covers short-term hospital stays and inpatient treatment. It can also cover short-term skilled nursing care following a hospital stay. Additionally, it can provide short-term hospice care and some home health care benefits.
Premium Cost: For many Americans who worked for at least 10 years (cumulative, not necessarily consecutive) and paid Medicare taxes out of their W-2 wages, the Medicare Part A Premium is $0.
Additional Costs: Medicare Part A has a deductible ($1,736 per person in 2026) for inpatient stays and daily coinsurance rates for extended hospital stays (61-90 days at $434 per day) and skilled nursing periods following a hospital stay (21-100 days at $217 per day).

2. Part B – Medical Coverage

Coverage: Part B covers medical services, such as doctor’s office visits, outpatient treatment, preventative care, lab work, and durable medical equipment.
Premium Costs: Medicare Part B has a monthly premium that is income-based. Lower earners pay lower monthly premiums, and higher earners pay higher monthly premiums based on a tiered income table that is updated each year. In 2026, the base (lowest) monthly premium rate for Medicare Part B is $202.90 per person per month. For the highest earners, Medicare Part B premiums max out at $689.90 per person per month.
Additional Costs: In 2026, Medicare Part B has an annual deductible of $283 per person. After this amount is paid out of pocket, Medicare Part B covers 80% of approved medical costs, and the Medicare beneficiary covers the remaining 20%.

3. Supplement/Medigap – Extended Coverage on top of Part A & B

Coverage: Medicare Supplement/Medigap plans come in 10 flavors, Plans A-N. Each offers a different premium cost and coverage level. Less expensive Medicare Supplements cover less, and more expensive Medicare Supplements cover more. All Medicare Supplements provide extended coverage to fill the gap after Part A Hospital and Part B Medical benefits are exhausted or maxed out. Medicare Supplement Plan G is the most comprehensive Medicare Supplement offered for individuals turning 65 in 2026 or later.
Premium Cost: Medicare Supplements are priced based on age, gender, tobacco use status, and zip code. Medicare beneficiaries in their 80s and 90s generally pay higher premiums than Medicare beneficiaries in their 60s and 70s. Men often pay higher premiums than women. Tobacco users often pay higher premiums than non-users. In 2026, nationwide monthly average Medicare Plan G premiums for a 65-year old often range between $150-300 per person per month depending on location.

4. Part D – Prescription Drug Coverage

Coverage: Medicare Part D covers prescription medications. It does not cover over-the-counter drugs, vitamins, or health/nutrition supplements.
Premium Costs: Medicare Part D costs are very individualized, because plan selection is based on the individual’s prescription medication list. In 2026, nationwide monthly average Part D premiums often range from $0-100 per person per month. Medicare Part D premiums are also income-based, with higher earners subject to an extra income-related premium surcharge based on a tiered income table that is updated each year. For the highest earners, Medicare Part D premium surcharges max out at $91 per person per month in addition to the monthly Part D plan premium.
Additional Costs: Medicare Part D plans also have deductibles and annual out-of-pocket maximums. The maximum deductible that a Medicare Part D plan may charge in 2026 is $615 per year, with many plans offering lower or $0 deductibles. In 2026, all Medicare Part D plans have a maximum annual out-of-pocket cost of $2,100 per year. Keep in mind, this out-of-pocket limit applies to the cost of the prescription medicines at the pharmacy, not the monthly Part D plan premiums or income-related surcharge for higher earners.

As you prepare to sit in the Medicare chair, whether you’re nearing age 65 eligibility or retirement after reaching age 65, your sturdy Medicare seat starts with understanding what each chair leg costs and covers. Like anything new and unfamiliar, Medicare often seems more complex than it actually is, so it is critical to educate yourself with reliable sources of information, not advertising designed to sell a product. Ready to learn more about Medicare and what enrollment could look like for you? Connect with us today. Foster Group takes the time to truly know our clients – not just their financial goals, but what’s in their hearts.