Pre-retirement checklist

Medicare has four parts: A covers hospitalization and is free; B covers outpatient services and has a monthly premium of $134 per month for most new enrollees in 2018. Higher-income retirees pay more. D covers prescription drugs.

Most people choose original Medicare Parts A and B and add Part D prescription drug coverage and a private medigap supplemental policy to cover deductibles and co-pays. About one-third of Medicare enrollees opt for an all-inclusive Medicare Part C plan, also known as Medicare Advantage, which tends to be less-expensive but limits services to the plan’s health-care-provider network.