If you’re turning 65 in 2026, understanding Medicare before enrolling is critical to avoid lifelong penalties or unexpected out-of-pocket costs. Medicare includes multiple parts—hospital, medical, and prescription coverage—and you’ll need to choose between a Supplement plan with broader access and predictable costs or a Medicare Advantage plan that bundles benefits but uses provider networks.

Medicare plans can change each year, affecting premiums, deductibles, co-pays, drug coverage, and doctor networks, so it’s crucial to review your Annual Notice of Change (ANOC) by September 30. Ignoring it could lead to higher costs, reduced benefits, or losing access to your doctors and prescriptions, especially if your plan is being crosswalked or non-renewed.

Medicare Part A and B costs are rising in 2026, with Part B premiums increasing about 10% and deductibles and coinsurance for both Parts A and B also going up. These changes, along with potential income-related surcharges for Part B and Part D, make it important to review your coverage to avoid surprise out-of-pocket costs.

Medicare does not cover many common and costly services, including routine vision and hearing care, dental work, annual physicals, and long-term care, which can lead to significant out-of-pocket expenses for retirees. Planning ahead with separate insurance or supplemental coverage is essential to avoid depleting retirement savings.