Medicare Enrollment: Key Coverage Choices, Costs, and Penalties for 2026

Medicare beneficiaries must choose between Original Medicare and Medicare Advantage plans, each offering distinct coverage structures and cost implications. Original Medicare comprises Part A (hospital insurance) and Part B (medical insurance), covering hospital stays and outpatient services but leaving gaps such as dental, vision, hearing, and prescription drug coverage, often supplemented by private Part D and Medigap plans. Medicare Advantage (Part C) plans, offered by private insurers, bundle Original Medicare benefits with additional coverage elements and impose an annual out-of-pocket maximum, providing cost predictability but requiring beneficiaries to use network providers.