Medicare 101
How Medicare Works: A Plain-English Guide for Nebraskans
No jargon. Just what each part of Medicare actually covers, and what it costs in 2026.
What is Medicare?
Medicare is the federal health insurance program for people age 65 and older, and for some younger people with disabilities or End-Stage Renal Disease. It has four parts: Part A (hospital), Part B (medical), Part C (Medicare Advantage), and Part D (prescription drugs).
What does Medicare Part A cover?
Part A covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people get Part A premium-free because they (or a spouse) paid Medicare taxes while working.
- 2026 inpatient hospital deductible: $1,736 per benefit period
- 2026 coinsurance, days 61–90 of a hospital stay: $434/day
- 2026 lifetime reserve days: $868/day
- If you don't qualify for premium-free Part A, the full premium is $565/month in 2026
What does Medicare Part B cover?
Part B covers doctor visits, outpatient care, preventive services, and durable medical equipment.
- 2026 standard monthly premium: $202.90 (up from $185.00 in 2025)
- 2026 annual deductible: $283
- Higher-income beneficiaries pay more through an income-related surcharge called IRMAA — call us if you want to know whether that applies to you.
What is Medicare Part C (Medicare Advantage)?
Medicare Advantage is an alternative way to get your Part A and Part B benefits through a private insurance company, usually bundled with extra benefits like dental, vision, hearing, and Part D drug coverage, plus an annual out-of-pocket maximum. Plans and costs vary by county.
Some Medicare Advantage plans also offer a Part B Give Back benefit that reduces the amount deducted from your Social Security check each month. This can be especially valuable for veterans who are enrolled in both VA coverage and Medicare. See how VA benefits and Medicare work together →
See how Medicare Advantage compares to Medigap →
What is Medicare Part D?
Part D is prescription drug coverage offered through private insurers, either as a standalone plan or bundled into a Medicare Advantage plan.
- 2026 maximum deductible: $615
- 2026 out-of-pocket cap: $2,100 — once you hit it, covered drugs cost $0 for the rest of the year
How much does Medicare cost in 2026?
| Item | 2026 Amount | What you owe (Original Medicare only) |
|---|---|---|
| Part B monthly premium (standard) | $202.90 | $202.90/month |
| Part B annual deductible | $283 | $283/year |
| Part B cost-sharing (after deductible) | — | 20% of every bill — no annual maximum |
| Part A inpatient hospital deductible | $1,736 | $1,736 per hospital stay |
| Part A premium (if not premium-free) | $565/month | $565/month (if applicable) |
| Part D maximum deductible | $615 | Up to $615/year |
| Part D out-of-pocket cap | $2,100 | Up to $2,100/year |
Source: Centers for Medicare & Medicaid Services, 2026 Medicare Parts A & B Premiums and Deductibles. Actual costs vary by income, plan choice, and county.
When can I enroll in Medicare?
Most people enroll during their 7-month Initial Enrollment Period, which starts 3 months before the month they turn 65. After that, the Annual Election Period (October 15 – December 7) and other special windows allow changes.
See every enrollment deadline →
Have a more specific question? See the full Medicare FAQ →
Still have questions?
We'll walk through your specific situation, free of charge.