Understand your Medicare choices before you pick a plan.

The complete Medicare plans guide

Medicare plans explained: how to compare Medicare Advantage, Medicare Supplement and Part D

Last reviewed October 2026 by the licensed team at Amerance Health Insurance Group. Costs shown are 2026 and 2027 Medicare figures from CMS. We add the 2027 Part A and Part B amounts when CMS releases them in November.

Medicare can feel like alphabet soup: Parts A, B, C and D, Medigap Plans G and N, HMOs, PPOs, SNPs, formularies and enrollment periods with different dates. This guide puts it all in one place. You'll learn what each part of Medicare covers, how the different kinds of Medicare plans work, what they cost in 2026 and 2027, when you're allowed to join or switch, and how to compare plans so you choose coverage that fits your doctors, prescriptions and budget.

Prefer to talk it through? Call (877) 581-4736 or request a callback and a licensed agent will walk you through the plans we offer in your ZIP code, at no cost to you.

What is Medicare?

Medicare is the federal health insurance program for people 65 and older, as well as some younger people with disabilities, End-Stage Renal Disease (ESRD) or ALS. More than 68 million Americans are enrolled. Medicare is run by the Centers for Medicare & Medicaid Services (CMS), and enrollment in Parts A and B is handled by the Social Security Administration.

There are two main ways to get your Medicare coverage:

1. Original Medicare (Part A and Part B), run by the federal government. You can add a stand-alone Part D drug plan and a Medicare Supplement (Medigap) policy to help with costs Original Medicare doesn't cover.
2. Medicare Advantage (Part C), an all-in-one alternative offered by private insurance companies approved by Medicare. Most plans include Part D drug coverage and extra benefits.

Either way, you need to be enrolled in Part A and Part B, and you continue paying your Part B premium. Turning 65 soon? Our Turning 65 Medicare guide covers your enrollment window, deadlines and penalties step by step.

Original Medicare: Part A and Part B

Medicare Part A (hospital insurance)

Part A helps pay for:

• Inpatient care in a hospital, including semi-private rooms, meals, nursing care and drugs given during your stay
• Care in a skilled nursing facility after a qualifying inpatient hospital stay of at least 3 days (not long-term custodial care)
• Hospice care
• Some home health care
• Inpatient care in a religious non-medical health care institution

Most people get Part A without a monthly premium because they or their spouse paid Medicare taxes for at least 10 years. Part A uses "benefit periods" rather than a calendar-year deductible: you pay the Part A deductible each time you're admitted after being out of the hospital or skilled nursing facility for 60 days in a row, so you could pay it more than once in a year.

Medicare Part B (medical insurance)

Part B helps pay for:

• Doctor visits, including specialists
• Outpatient care and outpatient surgery
• Lab tests, X-rays, MRIs and other diagnostic tests
• Preventive services such as flu and COVID-19 shots, cancer screenings and a yearly Wellness visit
• Durable medical equipment such as wheelchairs, walkers, hospital beds and oxygen
• Ambulance services, outpatient mental health care and physical, occupational and speech therapy
• Some drugs given in a doctor's office or clinic, such as infusions and chemotherapy

What Original Medicare doesn't cover

Original Medicare leaves some important gaps:

• No out-of-pocket maximum. After the Part B deductible, you usually pay 20% of the Medicare-approved amount with no yearly limit.
• Most prescription drugs you take at home (you need Part D).
• Routine dental care, dentures, routine eye exams, eyeglasses and hearing aids.
• Long-term custodial care in a nursing home.
• Care outside the U.S., with very limited exceptions.

Those gaps are why most people add coverage, either through a Medicare Supplement and Part D, or by choosing a Medicare Advantage plan.

Medicare Advantage (Part C) plans

Medicare Advantage plans are offered by private insurance companies that contract with Medicare. They must cover everything Original Medicare covers (except hospice, which Original Medicare still pays for), and they usually add prescription drug coverage and extra benefits. Over half of all people with Medicare are now enrolled in a Medicare Advantage plan.

What Medicare Advantage plans often include

• Hospital and medical coverage (Parts A and B)
• Prescription drug coverage (Part D) in most plans
• Dental, vision and hearing benefits
• Fitness programs and gym memberships
• Over-the-counter allowances for health products
• Telehealth visits
• A yearly out-of-pocket maximum. In 2027, the federal limit for in-network services is $9,850 (it was $9,250 in 2026), and many plans set a lower limit.

Many Medicare Advantage plans have a $0 monthly plan premium. You still pay your Part B premium. In some areas, plans with a "Part B giveback" reduce the Part B premium you pay. Benefits, premiums and availability vary by plan and by county.

Types of Medicare Advantage plans

Things to watch with Medicare Advantage

• Networks: make sure your doctors, specialists and hospitals are in network.
• Prior authorization: some services need approval from the plan first.
• Service area: you must live in the plan's service area, and non-emergency care while traveling may be limited.
• Yearly changes: plans can change benefits, costs and networks every January 1. Review your Annual Notice of Change each fall.

Medicare Supplement (Medigap) plans

A Medicare Supplement, also called Medigap, is a private insurance policy that works alongside Original Medicare. Medicare pays its share of an approved service first, then your Medigap plan pays some or all of what's left, such as deductibles, coinsurance and copayments. You can see any doctor or hospital in the U.S. that accepts Medicare, and you don't need referrals.

Medigap plans are standardized by the federal government and identified by letters. Every Plan G, for example, has the same core benefits no matter which insurance company sells it. What differs is the premium, how the company sets its prices over time, and its customer service. That makes it important to compare companies, not just plan letters.

Medigap Plan G

Plan G is the most comprehensive Medigap plan available to people who became eligible for Medicare on or after January 1, 2020. Once you've paid the yearly Part B deductible ($283 in 2026), Plan G covers the rest of your Medicare-approved costs for the year. It's popular with people who want predictable costs and freedom to see any provider.

Medigap Plan N

Plan N typically has a lower premium than Plan G. In exchange, you pay small copays for some office and emergency room visits, and Plan N doesn't cover Part B excess charges (the up-to-15% extra that some doctors who don't accept Medicare assignment can charge). Many people choose Plan N when their doctors accept assignment.

High-deductible Plan G

High-deductible Plan G offers the same benefits as Plan G after you meet a yearly deductible. Premiums are much lower, which can make it a good fit for healthy people who want catastrophic protection and are comfortable with a higher deductible.

Plans F and C

Plans F and C cover the Part B deductible, but by law they can't be sold to anyone who became newly eligible for Medicare on or after January 1, 2020. If you were eligible before then, you may still be able to buy them.

Other Medigap plans

Plans A, B, D, K, L and M offer different levels of coverage. Plans K and L have lower premiums and pay a percentage of costs up to a yearly out-of-pocket limit. Massachusetts, Minnesota and Wisconsin standardize Medigap plans differently from other states.

When to buy a Medicare Supplement

The best time to buy a Medigap plan is during your Medigap Open Enrollment Period, the 6 months starting when you're 65 or older and enrolled in Part B. During that window, companies can't refuse to sell you a policy or charge more because of your health. Outside it, in most states, you may have to answer health questions and could be declined. Certain situations, such as losing other coverage, give you "guaranteed issue" rights, and some states have additional protections.

Medigap plans don't include prescription drug coverage, so you'll usually pair one with a Part D plan. Medigap only works with Original Medicare. It can't be used with a Medicare Advantage plan.

Medicare Part D prescription drug plans

Medicare Part D helps pay for prescription drugs you take at home. You can get Part D through a stand-alone Prescription Drug Plan (PDP) if you have Original Medicare (with or without a Medigap plan), or through a Medicare Advantage plan with drug coverage (MAPD).

How Part D works in 2027

• Deductible: plans can have a deductible of up to $700 in 2027 (up from $615 in 2026). Many plans have a lower deductible or none for some drug tiers.
• Initial coverage: after the deductible, you pay copays or coinsurance for each prescription.
• Out-of-pocket cap: once your out-of-pocket spending on covered drugs reaches $2,400 in 2027 ($2,100 in 2026), you pay $0 for covered Part D drugs for the rest of the year. The old "donut hole" coverage gap is gone.
• Insulin: covered insulin costs no more than $35 for a month's supply.
• Recommended vaccines: adult vaccines recommended by the CDC, such as the shingles vaccine, are covered at no cost.
• Medicare Prescription Payment Plan: lets you spread your out-of-pocket drug costs into monthly payments across the year.

Comparing drug plans

Each plan has its own formulary (list of covered drugs), and places drugs into tiers with different costs. When you compare Part D plans, check:

• Whether all of your medications are on the formulary, at the right dosage
• Which tier each drug is on, and what you'll pay at each stage
• Whether your pharmacy is "preferred" in the plan's network, and whether mail order is cheaper
• Any prior authorization, step therapy or quantity limits
• The total yearly cost: premiums plus what you'll pay at the pharmacy, not just the premium

If you don't sign up for Part D when you're first eligible and you go 63 or more days without creditable drug coverage, you'll pay a late enrollment penalty for as long as you have Medicare drug coverage.

Medicare Advantage vs. Medicare Supplement: which is right for you?

A Medicare Advantage plan can be a strong fit if you want low premiums, extra benefits and one card for everything, and if your doctors are in the network. A Medicare Supplement can be a strong fit if you want nationwide access to providers, travel often, have ongoing health needs, or value predictable costs. Because switching from Medicare Advantage to a Medicare Supplement later may require passing health questions, it's worth thinking long term before you decide.

Medicare costs in 2026 and 2027

People with higher incomes pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of the standard Part B and Part D premiums. In 2026, IRMAA starts at modified adjusted gross income above $109,000 for individuals and $218,000 for married couples filing jointly, based on tax returns from two years earlier. CMS has already set the 2027 Part D and Medicare Advantage limits shown above. The 2027 Part A and Part B premiums, deductibles and IRMAA levels are usually announced in November, and we update this page when they're released.

When you can join or switch Medicare plans

You can't change Medicare plans whenever you want. Instead, you use specific enrollment periods:

Medicare Supplement plans aren't tied to the Annual Enrollment Period. You can apply for a Medigap plan any time of year, although outside of your open enrollment and guaranteed issue situations, you may need to answer health questions.

How to compare Medicare plans: a step-by-step checklist

1. List your doctors, specialists and hospitals. Note which ones you'd be unwilling to give up.
2. List your prescriptions, including the dosage and how often you take them, and your preferred pharmacy.
3. Think about your health over the next few years. Are there planned surgeries or ongoing treatments?
4. Decide how you prefer to pay: higher premiums with fewer bills, or lower premiums with copays as you go.
5. Consider travel. Do you spend part of the year in another state?
6. Check networks and formularies for every plan you're considering.
7. Estimate your total yearly cost: premiums, deductibles, copays, drug costs and the out-of-pocket maximum.
8. Look at extras that matter to you, like dental, vision and hearing coverage.
9. Check plan quality ratings. Medicare rates plans from 1 to 5 stars each year.
10. Review every fall. Read your Annual Notice of Change and compare during the Annual Enrollment Period.

Help paying for Medicare

If your income and resources are limited, several programs can help:

• Medicare Savings Programs (MSPs) are run by states and can pay your Part B premium, and in some cases your deductibles and coinsurance.
• Extra Help (the Part D Low-Income Subsidy) lowers your prescription drug premiums, deductibles and copays. You can apply through Social Security.
• Medicaid can cover costs Medicare doesn't, including long-term care. People with both Medicare and Medicaid ("dual eligible") may qualify for a Dual Special Needs Plan (D-SNP) that coordinates both.
• State Pharmaceutical Assistance Programs help with drug costs in some states.

We're happy to help you check whether you might qualify, even before you choose a plan.

Why work with a licensed Medicare agent?

You can research and enroll in Medicare plans on your own at Medicare.gov. Many people still choose to work with a licensed agent because:

• It costs nothing extra. Agents are paid by the insurance companies they represent. Your premium is the same whether you use an agent or not.
• You get plain-English explanations of plan documents, networks and drug coverage.
• Agents compare multiple plans for you, checking your doctors and prescriptions, so you don't have to.
• You get help after you enroll, with claims questions, ID cards and your yearly review.

Amerance Health Insurance Group is an independent agency, which means we represent multiple insurance companies rather than just one. We don't offer every plan available in your area, and we'll always tell you about Medicare.gov, 1-800-MEDICARE and your local State Health Insurance Assistance Program (SHIP) as sources for information on all of your options.

What to expect on your call

1. We'll confirm your ZIP code and the coverage you have now.
2. If you'd like to discuss specific plans, Medicare requires you to complete a short Scope of Appointment form first. It only lists the plan types you want to hear about.
3. We'll review your doctors, prescriptions and priorities, and compare plans available to you.
4. You decide. There's no pressure to enroll on the call.

Calls with our licensed agents may be recorded for quality and compliance.

Where Amerance Health helps with Medicare

Our licensed agents currently help people with Medicare in the 29 states below. Each state guide covers local Medigap rules, free counseling programs and help paying for coverage.

• Medicare in Alabama
• Medicare in Arizona
• Medicare in Arkansas
• Medicare in California
• Medicare in Florida
• Medicare in Georgia
• Medicare in Illinois
• Medicare in Indiana
• Medicare in Iowa
• Medicare in Kansas
• Medicare in Kentucky
• Medicare in Louisiana
• Medicare in Michigan
• Medicare in Minnesota
• Medicare in Missouri
• Medicare in Nebraska
• Medicare in New Jersey
• Medicare in North Carolina
• Medicare in North Dakota
• Medicare in Ohio
• Medicare in Oklahoma
• Medicare in Pennsylvania
• Medicare in South Carolina
• Medicare in Tennessee
• Medicare in Texas
• Medicare in Virginia
• Medicare in West Virginia
• Medicare in Wisconsin
• Medicare in Wyoming

Licensing changes over time, so call us to confirm coverage in your state.

Medicare FAQs

Sources

• CMS: CY 2027 Rate Announcement (2027 Part D deductible and out-of-pocket cap)
• CMS: 2026 Medicare Parts A & B premiums and deductibles
• Medicare.gov: Compare Medigap plan benefits
• Medicare.gov: Types of Medicare health plans
• Medicare.gov: Drug coverage (Part D)
• KFF: Medicare Advantage in 2026