Medicare is the federal health insurance program designed to provide coverage for individuals aged 65 and older, as well as some younger individuals with certain disabilities. Understanding your eligibility for Medicare Parts A and B is a crucial step in planning your healthcare in retirement.

Medicare Part A primarily covers hospital stays, skilled nursing facilities, and hospice care. To qualify for Part A at no premium cost, you or your spouse must have worked and paid Medicare taxes for at least 10 years (or 40 quarters). If you haven’t met the work requirement, you can still purchase Part A coverage by paying a premium, which can range up to $499 per month (as of 2024), depending on your work history.

Medicare Part B covers outpatient services like doctor visits, preventive care, medical equipment, and some therapies. Most people become eligible for Part B when they turn 65, as long as they are U.S. citizens or permanent legal residents living in the U.S. for at least five years. Part B comes with a monthly premium, which for 2024 is typically $174.70, though it may be higher based on income.

Eligibility for Parts A and B begins during the Initial Enrollment Period, which starts three months before your 65th birthday, includes your birth month, and ends three months after. If you miss this window, you may face penalties or delays in coverage.

Understanding the eligibility rules and enrolling on time ensures you have access to affordable healthcare in retirement and prevents gaps in your coverage.