What to Know:

• Medicare open enrollment runs Oct. 15 through Dec. 7.
• Medicare coverage comes with premiums, deductibles, and other costs.
• Higher-income recipients may face additional Medicare surcharges.

ORLANDO, Fla. – Medicare’s annual open enrollment period is underway, giving millions of Americans an opportunity to review their health insurance coverage and make changes for the coming year. But with different plans, premiums, deductibles, and coverage options to consider, navigating Medicare can be confusing, especially for those trying to determine whether their current coverage still meets their needs and their budget.

And if you’re new to Medicare, simply understanding the different parts of the program can feel like learning a new language.

While Medicare provides health insurance for more than 70 million Americans, it isn’t free. Depending on the coverage you choose and your income, the costs can add up, sometimes in ways you might not expect.

CBS News Business Analyst Jill Schlesinger says understanding how Medicare works, what each “part” covers, and what you’ll actually pay is an important first step before making any changes during open enrollment.

Here’s our full transcript of an interview we did with her this week. The Medicare premiums and deductibles discussed below reflect 2026 costs. Amounts for 2027 may differ.

WKMG-TV: Annual open enrollment for Medicare has begun and runs now through December 7th. And as in years past, there are some important changes you need to know about before deciding which coverage is right for you.

CBS News Business Analyst Jill Schlesinger is here to help us navigate the process.

Jill, let’s start with a primer on Medicare.

Jill Schlesinger: Yeah, it is a tough system to navigate. So, get some patience as you go through this.

This is coverage for your health insurance for more than 70 million Americans who are over the age of 65 and those who are entitled to federal disability insurance benefits. Medicare is funded by both us, the taxpayers, while we’re working, and the federal government.

I think there’s a little bit of a misconception. People think that ‘Gosh, as soon as I stop working, I’ll go on Medicare. I’ll save a bunch of money on my costs.’ Not the case.

Also, because so many people are working longer, I just want to mention just because you are 65, it doesn’t mean you have to go on Medicare. If you are employed by a company or an organization with more than 20 people, you can continue to use your health insurance there for as long as you are employed up to any age.

WKMG-TV: And Jill, can you break down the different “Parts” for us and what people need to know about them?

Jill Schlesinger: Yeah, this is a veritable alphabet soup.

So, Part A, that’s insurance for hospitalization, home or skilled nursing, and hospice.

Part B is your medical and your doctors.

Part D, that is prescription medications – and that is a plan sold by private health insurance companies.

Now, Part C, it’s not exactly Medicare, it’s called Medicare Advantage, but it’s actually private plans that bundle A, B, and D into one plan. During open enrollment, you can join, drop, or switch that Medicare Advantage Part C, and you can also change your Medicare drug plan.

Editor’s note: Medicare Advantage is part of Medicare, although administered through private insurers.

WKMG-TV: Jill, what is the cost of Medicare for recipients?

Jill Schlesinger: So, there’s no monthly cost for Part A (for most recipients, but not every recipient), but there is an annual deductible, the amount you pay before coverage kicks in. That annual deductible is $1,736.

Editor’s note: The Part A deductible is charged per benefit period, not annually. Depending on their circumstances, recipients could pay this deductible more than once in a year.

Part B, it’s a monthly amount. So, for this year, it was just under $203 per month (the standard monthly premium for most Medicare recipients), and an annual deductible of $283 (the amount you pay before Medicare begins paying its share of covered services).

The (Part D) prescription drug policies – they’re totally all over the board, but the average premium is about $34.50 this year.

And there’s one extra note: you might be subject to extra costs for Medicare if you make too much money.

Don’t tune out if you think this is just rich people, because there are a lot of people who are pension folks. Maybe you’re a retired teacher, you get social security, you’re pulling some money out of a retirement account. It might subject you to something called the income-related monthly adjustment amount, or IRMAA. And what the government does is that they go back two years to look at your income, and if you’re over a certain threshold, you’ll get a surcharge.

So, if you’ve got some income or something’s changed, do check this out. Just do a little research on IRMAA so you don’t have that surprise.

WKMG-TV: Jill, that’s a lot of information but it’s a lot of really good information. Thank you so much. You can see Jill regularly on CBS Mornings and the CBS Evening News. For more analysis, go to JillOnMoney.com.