What are the four parts of Medicare?

Medicare has four parts: Part A (hospital insurance), Part B (medical insurance covering doctor visits and outpatient care), Part C (Medicare Advantage plans offered by private insurers), and Part D (prescription drug coverage). Most people need a combination of these parts for comprehensive coverage.

When should I enroll in Medicare?

Your Initial Enrollment Period (IEP) is a 7-month window that starts 3 months before you turn 65, includes your birthday month, and ends 3 months after. Missing this window can result in permanent late enrollment penalties added to your premiums for life.

What is IRMAA and how does it affect my Medicare costs?

IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge on Medicare Part B and Part D premiums for higher-income beneficiaries. In 2026, if your MAGI exceeds $109,000 (individual) or $218,000 (joint), you pay higher premiums. Medicare uses income from two years prior, so your 2024 tax return determines your 2026 IRMAA.

What is the difference between Medicare Advantage and Original Medicare with Medigap?

Original Medicare with Medigap offers broad provider choice nationwide with predictable costs but higher monthly premiums. Medicare Advantage bundles coverage into one plan with lower premiums and extra benefits like dental and vision, but limits you to network providers and may cost more if you need extensive care.

Do veterans need Medicare if they have VA benefits?

VA benefits and Medicare operate independently and do not coordinate. Many veterans benefit from having both, as Medicare provides flexibility for non-VA providers, local pharmacies, and care while traveling. VA drug coverage is creditable, so veterans won't face Part D late enrollment penalties.

Medicare Planning Guide Gulf Coast | Grove Financial Group Mobile AL

Medicare Planning Guide for Gulf Coast Families

Feeling Lost in the Medicare Maze? We Get It.

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Choosing the right Medicare plan shouldn't keep you up at night. Yet thousands of Americans approaching 65 find themselves drowning in Medicare enrollment paperwork, wondering if they're making the right healthcare decisions. Grove Financial Group is here to help you plan smarter.

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Who Really Needs This Medicare Guide?

🎯 Approaching Your 65th Birthday

First-time Medicare enrollees wondering where to start
People looking for Medicare enrollment tips and deadlines
Anyone wanting to understand Medicare basics before making decisions

🎯 Transitioning from Employer Health Insurance

Recent retirees navigating the switch to Medicare
Individuals losing COBRA coverage and exploring Medicare options
People wondering about Medicare and employer insurance coordination

🎯 Caring for Aging Parents

Adult children helping parents understand Medicare choices
Family members researching Medicare Supplement insurance options
Anyone supporting loved ones through the Medicare enrollment process

Everything You Need to Know About Medicare

Medicare Part A & B: Your Foundation Coverage

Original Medicare forms the backbone of most people's healthcare coverage after 65. Think of it as your safety net—covering hospital stays, doctor visits, and essential medical services. But here's what many people don't realize: Original Medicare typically covers about 80% of your healthcare costs, leaving you responsible for the remaining 20%. In 2026, the Part B standard premium is $202.90 per month with an annual deductible of $283.

Medicare Part C (Medicare Advantage): The All-in-One Option

Medicare Advantage plans bundle everything together—your hospital coverage, doctor visits, and usually prescription drugs—often with extra perks like dental, vision, or wellness programs. These private insurance plans can be attractive, but they come with network restrictions that might limit your choice of doctors and hospitals. Our financial planning services can help you evaluate which path is right for your situation.

Medicare Part D: Prescription Drug Coverage

Unless you have creditable prescription drug coverage elsewhere, you'll want Medicare Part D to avoid costly penalties. In 2026, Part D includes a $2,000 annual out-of-pocket cap on prescription drug costs—once you reach this limit, you pay $0 for covered drugs the rest of the year. The average monthly premium is approximately $46.50.

Medicare Supplement Insurance (Medigap): Filling the Gaps

Medigap policies work alongside Original Medicare to help pay those out-of-pocket costs—deductibles, coinsurance, and copayments. If you value predictable healthcare expenses and want to keep your current doctors, Medigap might be your best bet. Plan G is the most popular option in 2026, covering everything except the annual Part B deductible.

Critical Medicare Enrollment Periods You Cannot Miss

Initial Enrollment Period (IEP)

Your Medicare enrollment window opens three months before your 65th birthday and closes three months after. Miss this 7-month window, and you could face late enrollment penalties that last for life. The Part B penalty is 10% for each full 12-month period you were eligible but didn't enroll.

Annual Enrollment Period (AEP)

October 15 through December 7 each year. During AEP, you can switch between Original Medicare and Medicare Advantage, change MA plans, or join, switch, or drop a Part D plan. Changes take effect January 1 of the following year. Review your plan every year—premiums, formularies, and networks change annually.

Special Enrollment Periods (SEPs)

Certain life events—like losing employer coverage, moving out of your plan's service area, or qualifying for Medicaid—can trigger special enrollment opportunities outside the normal periods. Veterans with VA coverage have unique considerations. Our team specializes in coordinating retirement planning in Mobile with Medicare timing.

Common Medicare Mistakes That Cost Thousands

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Assuming Medicare is Free: While Medicare Part A is premium-free for most people, Part B costs $202.90 per month in 2026 (and significantly more with IRMAA surcharges). Part D has separate monthly premiums. Budget for premiums, deductibles, copayments, and coinsurance.

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Not Comparing Medicare Advantage vs. Original Medicare + Medigap: These two paths offer very different approaches to healthcare coverage. Medicare Advantage might save money upfront but could cost more if you need extensive medical care. Integrating Medicare decisions with your broader wealth management strategies can save you thousands over the course of retirement.

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Ignoring Network Restrictions: Medicare Advantage plans limit you to specific doctors and hospitals. If your current healthcare providers aren't in-network, you might need to switch or pay significantly more.

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Failing to Plan for IRMAA: A single large IRA withdrawal or home sale can push you above IRMAA thresholds, triggering premium surcharges. In 2026, just $1 over the $109,000 (individual) or $218,000 (joint) threshold triggers the full surcharge—an additional $974+ per year per person. Income planning is essential.

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Delaying Enrollment Without Creditable Coverage: Late enrollment penalties can add hundreds of dollars to your monthly Medicare premiums—permanently. The Part B penalty is 10% per year you were eligible but didn't sign up. The Part D penalty compounds monthly for as long as you have coverage.

Medicare Planning Tips from Our Team

🔸 Start Early

Begin researching Medicare options at least six months before your 65th birthday. This gives you time to compare plans, verify provider networks, and coordinate with your retirement income strategy.

🔸 Consider Your Long-Term Health

Choose coverage that will serve you well as your healthcare needs potentially increase. If you're currently healthy but have a family history of serious illness, the broader protections of Original Medicare with Medigap may be worth the higher monthly premium.

🔸 Coordinate with Social Security

Your Medicare, Social Security, and retirement income decisions are deeply interconnected. Timing matters. Our financial planning services integrate all three into a single, optimized strategy.

🔸 Review Annually

Medicare plans change yearly. What worked last year might not be the best option this year. Review during the Annual Enrollment Period (October 15–December 7) every single year.

🔸 Get Professional Help

The interaction between Medicare, taxes, Social Security, and retirement accounts is complex and costly to get wrong. Grove Financial Group provides personalized guidance so you make confident, informed decisions.

🔸 Veterans: Know Your Options

VA prescription drug coverage IS creditable coverage—you won't face Part D late enrollment penalties. But many veterans benefit from having both VA and Medicare for maximum flexibility, especially when traveling or living far from a VA facility.

Explore More from Grove Financial Group

Medicare is one piece of your retirement puzzle. Explore our comprehensive retirement planning in Mobile services.

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Ready to Make Confident Medicare Decisions?

You don't have to navigate Medicare enrollment alone. Whether you choose Original Medicare with a Medigap policy or decide on a Medicare Advantage plan, the key is understanding your options and making an informed decision that fits your healthcare needs and budget.

Take Action Today:

✓ Review your current health insurance coverage
✓ List your preferred doctors and medications
✓ Research Medicare plans available in your area
✓ Schedule a free consultation with Grove Financial Group