First-time Medicare enrollment can be overwhelming. With so many options for plans and so many details on how to sign up, getting yourself covered can feel like a daunting task. That’s why we wrote up our top six tips for new Medicare enrollees to make sure you’re covering all your bases and finding a plan that’s perfect to fit your needs and your budget.

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1. Understand Original Medicare vs. Medicare Advantage

The terms can get confusing when you’re shopping for a plan the first time. To choose the right one for you, first you have to know what you’re looking at. 

Original Medicare refers to Medicare Parts A and B, which covers about 80% of the costs of the essential health services you will need including doctor visits, hospital care, transportation, lab work, and more. If you want to cover more than 80% of the cost under Original Medicare, you have to look into a Medicare Supplement Insurance plan—aka Medigap—which can pay the rest if you need it.

Medicare Advantage, on the other hand, is a private insurance company’s plan that comes as either a PPO or an HMO, and covers all the same essential services. The cost of these plans varies region to region and based on what types of other perks you want, since some Medicare Advantage plans add in services like dental or vision that Original Medicare doesn’t cover. Medicare Advantage tends to save some money on premiums and deductibles but limit flexibility since, unlike with Original Medicare, you have to see a doctor in-network.

2. Understand Prescription Drug Coverage

Prescription drugs you pick up at a pharmacy aren’t covered under Original Medicare. One way to get that coverage is to purchase a Medicare Part D plan. Each Medicare Part D plan has a formulary, or list of drugs covered. Checking that formulary for the prescription drugs you need or may need in the future can show you how much they will cost out-of-pocket under that plan. From there you can decide which of the Medicare Part D plans in your area is the best fit for you.

The other option is to look at a Medicare Advantage plan that includes prescription drug coverage. Most Medicare Advantage plans do have their own formularies of drugs that they cover, as well. You may be able to get a better overall deal on your health plan by getting a Medicare Advantage plan that covers prescription drugs than by combining Original Medicare with Medicare Part D.

3. Getting a Medicare Supplement During Your Initial Enrollment Period Might Save Money

For many people, getting a Medicare Supplement  plan during the Initial Enrollment period ends up saving money long-term, including for Medicare Part D and other Medicare Supplement plans. The Initial Enrollment Period is usually the window from three months before your 65th birthday, your birthday month, and three months after you turn 65. During this time you can’t be denied coverage and you have a greater range of options for plans.

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If you miss this window or want to change your coverage afterwards, you may be able to adjust parts of it during Medicare’s yearly Open Enrollment. In some cases you can get a Special Enrollment Period for events like a marriage, divorce, or change of coverage from your job. If your health care costs are covered under work or another program, you can usually delay your Initial Enrollment Period for Medicare Part B and avoid the penalty.

4. Find Out If You Want to Delay Medicare Part B

Most people will want to sign up for premium-free Medicare Part A right when they turn 65. However, the services covered under Medicare Part B are often covered through employer-based health care, and for this reason the option to delay Medicare Part B is available. 

You can delay signing up for Medicare Part B and stay on another plan as long as you can provide coverage for Part B services—which include doctor visits, clinic care, and lab work. This way, you can put the start of Medicare Part B off until your retirement with no penalty. 

5. Consider What Providers You Want to See

If there is a specific provider you want to be able to see when you switch to Medicare, make sure that they are covered under whichever plan you choose. A majority of doctors will accept Original Medicare, but not all, so making sure can help.

If you are looking at Medicare Advantage plans—especially if they are HMOs—make sure to check if the providers you want access to take the insurance of the plan you choose. If you don’t mind switching doctors this is less of a concern, but many people want to continue seeing the same providers they were seeing before starting Medicare. Some plans require your provider be in-network to cover the cost.

6. Consider the Cost of the Available Plans

When choosing a Medicare plan, whether it’s Original Medicare, Medicare Supplement Insurance, or Medicare Advantage, cost becomes a huge decision-making factor. Even choosing within these types of plans, there is often a tradeoff as far as premiums vs. deductibles and which will provide better value in the long-term.

Generally speaking, a low premium will mean a higher deductible and vice versa. A premium is the monthly cost of your plan, while a deductible is the cost paid at the point of service when you receive care such as a visit to the hospital. High deductibles will usually mean lower monthly payments, because you are only paying if you need to access the care. Copayment and coinsurance costs—the part of treatments or medications received that you pay out of pocket—can vary as well.

This means if you think you will use your plan to see providers regularly, a higher-premium plan will generally be cheaper in the long run. However, if you don’t intend to use your health care as much, a higher-deductible plan may be a better fit. Understanding exactly what each potential plan will cover as far as numbers of doctor visits and percentage of care at the hospital can help you decide on the best deal.