Key Things to Know before Enrolling in Medicare.

By The Exchange Team

When you first attempt to navigate Medicare, it may feel like you're trying to find your way through a maze.

The federal health insurance program, which covers 56.5 million 65-and-older, has different "components."

Whether you're 65 or older and transferring from employer insurance to Medicare, there are important financial considerations.

Medicare will cost you. Part A premiums are covered by taxes paid throughout your working years, whereas Parts B and D have monthly premiums.

1. It’s going to cost you

Missing the Part B enrollment deadline can result in a lifelong late-enrollment penalty of 10% monthly of Part B regular premium.

2. Missing key deadlines can mean paying extra.

Supplemental coverage may affect Medicare expenses. Advantage Plans are available.

3. Supplemental insurance may make sense.

Unlike traditional Medicare, Advantage Plans cap out-of-pocket payments. Their cost-sharing systems (deductibles, copays, coinsurance) also vary by plan.