## How Medicare works Medicare is a government health insurance program for Americans who are 65 or older and younger people who have certain disabilities and receive Social Security benefits. ### Medicare facts to know - You can sign up for Medicare at age 65, even if you’re not ready to retire - Medicare pays for approximately 80% of medical expenses and covers only certain types of care. Additional Medicare coverage from Blue Cross and Blue Shield of Minnesota can help pay some of your additional healthcare costs. - You may pay a penalty if you don’t sign up for Medicare Part B and Part D coverage when you first become eligible Learn how Medicare works ## The parts of Medicare Each part provides partial coverage to help pay for your healthcare expenses. SVG .cls-1 { fill: #231f20; } .cls-2 { fill: none; stroke: #231f20; stroke-linecap: square; stroke-miterlimit: 10; stroke-width: 2px; } ### Part A: Hospital coverage **Original Medicare** Medicare Part A helps pay for inpatient care in: - Hospitals - Skilled nursing facility (SNF) - Hospice care - Home health care [Learn more about Part A](/understanding-health-insurance/learn-about-medicare/understanding-medicare/original) SVG .cls-1, .cls-2 { fill: none; stroke: #231f20; stroke-miterlimit: 10; stroke-width: 2px; } .cls-2 { stroke-linecap: square; } ### Part B: Medical coverage **Original Medicare** Medicare Part B helps pay for medically necessary services and supplies: - Services from doctors and other health care providers - Outpatient care - Home health care - Durable medical equipment - Many preventive services (like shots, vaccines, and yearly Wellness visits) [Learn more about Part B](/understanding-health-insurance/learn-about-medicare/understanding-medicare/original) SVG .cls-1 { fill: #231f20; } .cls-2 { fill: none; stroke: #231f20; stroke-linecap: square; stroke-miterlimit: 10; stroke-width: 2px; } ### Part C: Medicare Advantage Offered through private insurers, Medicare Part C combines your Medicare Part A, Part B, and usually Part D benefits under one Medicare Advantage plan. Plans may offer benefits for: - Dental - Vision - Hearing - Acupuncture - Over-the-counter items and more [Learn more about Part C](/understanding-health-insurance/learn-about-medicare/understanding-medicare/medicare-part-c) SVG .cls-1, .cls-2 { fill: none; stroke: #231f20; stroke-miterlimit: 10; stroke-width: 2px; } .cls-2 { stroke-linecap: square; } ### Part D: Drug coverage Medicare Part D helps pay prescription drug costs. It can be added to Original Medicare or a Medicare Supplement or Medicare Cost plan that doesn’t have prescription drug benefits. Part D prescription drug plans are offered through private insurance companies. [Learn more about Part D](/understanding-health-insurance/learn-about-medicare/understanding-medicare/medicare-part-d) SVG .cls-1 { fill: none; stroke: #231f20; stroke-linecap: square; stroke-miterlimit: 10; stroke-width: 2px; } ### Medicare Supplement (Medigap) Medicare Supplement, also known as Medigap, are medical-only plans offered through private insurers that help cover what Original Medicare doesn’t cover, including: - Copays - Coinsurance - Deductibles [Learn more about Medicare Supplement](/understanding-health-insurance/learn-about-medicare/understanding-medicare/supplement) SVG .cls-1 { fill: #231f20; } .cls-2 { fill: none; stroke: #231f20; stroke-linecap: square; stroke-miterlimit: 10; stroke-width: 2px; } ### Medicare Cost Medicare Cost plans give you all the benefits of Original Medicare, plus additional benefits like dental, vision, hearing and more. Some Cost plans also offer optional Part D prescription drug coverage. Available in 21 Minnesota counties. [Learn more about Medicare Cost](/understanding-health-insurance/learn-about-medicare/understanding-medicare/medicare-part-c#cost-plans) ## Support and resources ![Step-by-Step Guide iPad cover](/sites/default/files/styles/3x2_third/public/dam/iv0inhrfua/2026-step-by-step-guide-cover-550x285.png.webp?itok=By4gAGYy "2026-step-by-step-guide-cover-550x285.png") ### Understanding Medicare Use this free step-by-step guide to learn about the essentials of Medicare. It covers the four parts of Medicare, when to enroll, how to avoid penalties and more. [Download 2026 Step-by-Step Guide (English)](https://bluecrossmn.widen.net/content/2cf29zsxge/original/2026-medicare-step-by-step-guide.pdf "2026-medicare-step-by-step-guide.pdf") [Download 2026 Step-by-Step Guide (Spanish)](https://bluecrossmn.widen.net/content/4mwivywokv/original/2026-medicare-step-by-step-guide-spanish.pdf "2026-medicare-step-by-step-guide-spanish.pdf") ![Adults attending a workshop](/sites/default/files/styles/3x2_third/public/dam/mqmm6zgmxy/adults-medicare-workshop-istock-1145049554-rt-web.jpg.webp?itok=BCx5gJJV "adults-medicare-workshop-istock-1145049554-rt-web.jpg") ### Free Medicare Workshops Join us for a free, no obligation, in-person or virtual Medicare workshop to learn about Medicare and available plans based on the county you live in. [Register for a workshop](https://bcbsmn-retail.my.salesforce-sites.com/registration/) ![Advisor helping senior couple](/sites/default/files/styles/3x2_third/public/dam/uwanwdnnuo/seniors-advisor-meeting-istock-1461150525-rt-web.jpg.webp?itok=7lTqhNHb "seniors-advisor-meeting-istock-1461150525-rt-web.jpg") ### It doesn't have to be hard **Our Blue Cross Advisors are here to:** - Help you learn about Medicare basics and our plans - Assist you in finding a plan that meets your needs - Help you enroll in a plan [Connect with a Blue Cross Advisor](/our-plans/blue-cross-advisors) Blue Cross offers Cost, PPO, and PDP plans with Medicare contracts. Enrollment in these Blue Cross plans depends on contract renewal. S5743\_090825\_G02\_M Y0138\_090825\_ G01\_M