During the enrollment period, clients can sign up for original Medicare Parts A and B.  Part A is free and covers hospital costs.  Part B has a monthly premium and covers outpatient services.  During initial enrollment, new beneficiaries can also enroll in a Medicare Part D prescription drug plan and select a supplemental Medigap policy to pay for costs such as Medicare's annual deductibles and co-payments.

About one-third of medicare beneficiaries forgo the original Medicare route and and opt instead for a Medicare Advantage plan, also knpwn as Medicare C, which includes all the hospital-iztion and outpatient services of original Medicare and often offers prescription drug coverage, too.  Most Medicare Advantage plans restrict access to in-networkhealth-care providers.