For help wading through the options, try these resources:
The Medicare Rights Center offers a comparison tool at www.MedicareInteractive.org and a toll-free number for personalized help: 800-333-4114.
The Centers for Medicare & Medicaid Services offers comparison tools at www.Medicare.gov.
The National Association of Area Agencies on Aging can help you find local AAA resources at www.n4a.org.
Allsup at www.allsup.com offers individuals a Medicare advisory service for $200.
State insurance departments offer information on Medigap plans.
Where The Costs Are
Medicare Part A covers hospitalization and in-patient services. It's premium-free for people who've worked in the U.S. for at least 10 years and therefore have paid Medicare payroll taxes, but there is a substantial deductible, this year set at $1,100.
Medicare Part B covers doctor visits and other outpatient services, and most people have to pay a monthly premium. In 2010, most Americans who already are taking part in Medicare and don't qualify for financial assistance will pay $96.40 a month in Part B premiums while most new enrollees will pay $110.50 a month. Premiums are typically deducted from beneficiaries' Social Security benefits. Like Part A, Part B requires beneficiaries to meet an annual deductible and pay coinsurance.
Medicare Part D is administered by private insurers, and the average monthly premium is $30, according to the Centers for Medicare & Medicaid Services. Scrutinizing the plans' formularies, or list of covered drugs, when comparing plans is key for protecting your personal finances. Beneficiaries who have significant drug costs should prepare for sticker shock because the program includes a coverage gap known as the doughnut hole.