During work years, we pick a health insurance covered by employer for ourselves and family and take care of health coverage. What happens during retirement?

What is Medicare? What are the components of Medicare? We have already seen in the Medicare page. Let us spend some time on the details around it. One important note: application should start during the 7-month initial enrollment period. Details are available on Medicare web site.

Given below are some premium costs based on 2026 numbers (use for estimation purposes)

IRMAA is a surcharge (Income Related Monthly Adjustment Amount) added to Medicare Part B and Part D premiums based on income levels (MAGI). This is a key parameter to watch during retirement projections.

• Medicare uses a 2-year look back rule to determine premiums.
• MAGI includes: 401k withdrawals, Roth conversions, interest/dividends, capital gains, rental income.
• Does NOT include: Roth withdrawals, HSA reimbursements, return of principal.


• Note: Given here is a simple introduction of Medicare. More details are available and should be looked into before making decisions.


• Medicare Flowchart gives you a clear idea what is covered by which part & what is not covered. One needs to look at it in a wholistic manner



Medicare Key Enrollment Windows

Timing is critical to avoid lifelong late-enrollment policies.


• Initial Enrollment Period:
The 7-month window surrounding your 65th birthday (3 months before, the month of , and 3 months after)
• General Enrollment Period (Jan 1 - Mar 31):
For those who missed their initial window; coverage typically begins the first of the month after you sign up
• Open Enrollment Period (Oct 15 - Dec 7):
The annual time when current beneficiaries can switch plans for the following year.
Note: If you are still working and have employer-sponsored health insurance, you may be able to delay Part B without penalty, but is always best to verify with your HR department or Social Security.