Medicare is a federal health insurance program that provides coverage for Americans aged 65 and older, plus younger people with certain disabilities. As an entitlement program, those who meet eligibility requirements are legally guaranteed these benefits. Traditional Medicare includes Part A for hospital coverage and Part B for medical services, with a 2026 Part B premium of $202.90 monthly and $283 annual deductible.

Medicare Advantage plans are an alternative way to receive Medicare benefits through private insurance companies approved by Medicare. These companies receive federal payments to provide the same coverage as traditional Medicare, plus they must include prescription drug coverage. Medicare Advantage plans typically use provider networks and may offer additional benefits like dental and vision care for extra premiums. The key difference is that traditional Medicare allows you to see any provider accepting Medicare, while Medicare Advantage plans generally require you to use their network of doctors and hospitals for the best coverage and lowest costs.