Turning 65 is a big milestone, and many people wonder if Medicare will cover everything for free. The short answer: not exactly. You get basic coverage, but you’ll still have out‑of‑pocket costs depending on the parts you choose.
When you hit 65, you become eligible for Medicare Part A (hospital insurance) and Part B (medical insurance). Part A is usually premium‑free if you or your spouse paid Medicare taxes for at least 10 years while working. That means you won’t get a monthly bill for hospital stays, but you still pay a deductible each year.
Part B, on the other hand, isn’t free for most people. The standard monthly premium is about $164 in 2025, and it can be higher if your income exceeds certain limits. Part B helps cover doctor visits, outpatient care, and some preventive services. You’ll also face an annual deductible and usually a 20% coinsurance after that.
If you prefer a more all‑in‑one plan, you can look at Medicare Advantage (Part C) or prescription drug coverage (Part D). These are offered by private insurers and have their own premiums, copays, and formularies. Choosing them can simplify billing, but they still aren’t “free”.
Even with Part A free, you’ll likely encounter three main out‑of‑pocket expenses: the Part B premium, the Part B deductible, and any copays or coinsurance for services. Some people qualify for assistance through the Medicare Savings Programs, which can cover premiums and deductibles if your income is low enough.
Another way to cut costs is to enroll in a Medigap (Supplemental) plan. These plans fill the gaps left by Original Medicare, like the 20% coinsurance, and can reduce surprise bills. Keep in mind that Medigap plans have their own monthly fees, but they often make budgeting easier.Don’t forget about the annual “donut hole” in prescription drug coverage. If you need regular meds, compare Part D plans carefully to find one with lower out‑of‑pocket caps.
Lastly, check if your employer offers retiree health coverage. Some large companies keep you on their group plan after you retire, which can work alongside Medicare and lower your overall spending.
Bottom line: Medicare gives you a solid safety net at 65, but it isn’t free across the board. Knowing which parts you need, exploring assistance programs, and comparing private options will help you keep costs under control while you enjoy your new senior benefits.
Curious if Medicare Part A is truly free when you turn 65? Learn who pays, who doesn't, the hidden costs, and sneaky rules that could surprise you.