Medicare Advantage HMOs generally require you to use network doctors. With a Medicare Supplement plan, you can usually visit any doctor who accepts Medicare. With a Medicare Advantage PPO, you may use network and out-of-network doctors, but you usually pay lower out-of-pocket costs by using a network doctor.

Original Medicare doesn’t generally cover prescriptions, but most Medicare Advantage Plans and all Medicare Prescription Drug plans do. Also, the federal government offers a program called Extra Help to assist those with limited income and resources pay their prescription drug costs.

Medicare Part D has four stages: Deductible, Initial Coverage, Coverage Gap and Catastrophic. You reach the Coverage Gap–or Donut Hole–stage when what you pay PLUS what your Medicare Prescription Drug Plan pays reaches $4,020 for the year. After that, you pay no more than 25% of the cost of covered generic drugs and no more than 25% of the cost of covered brand-name drugs until you reach the Catastrophic Stage. Once you reach the Catastrophic Stage, you will pay no more than 5% of the cost of covered drugs for the rest of the year.

The Initial Enrollment Period (IEP) is for people who are newly eligible for Medicare. During the IEP one can enroll in Original Medicare, Medicare Advantage plans and Medicare approved prescription drug plans. You can enroll in a Medicare Supplement plan any time, but enrolling during your IEP is best.

If you already receive Social Security benefits, you’re automatically enrolled in Original Medicare when you turn 65. You may have to pay a late enrollment penalty if you don’t enroll in Medicare when you’re first eligible. If you’re covered by an employer’s health plan, either through your or your spouse’s employment, it is very important to talk to a Human Resources representative about your coverage options and the best time to enroll in Medicare.