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Plain definitions

Medicare glossary — in plain English.

A short glossary of the Medicare terms you actually hear when comparing plans.

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A–G

AEP (Annual Enrollment Period)
October 15 to December 7. The main window to switch plans. More.
Coinsurance
Your share of cost as a percentage (often 20%).
Copay
A flat fee per service.
Coverage gap (donut hole)
Historical Part D phase where you paid more for drugs. More.
Creditable coverage
Other coverage at least as good as Medicare — keeps you out of late penalties.
Deductible
Amount you pay before coverage starts.
Formulary
The list of drugs your Part D plan covers, organized by tier. More.

H–O

HMO
Network plan that usually requires you to stay in network. More.
IEP (Initial Enrollment Period)
The 7 months around your 65th birthday. More.
IRMAA
Income-Related Monthly Adjustment Amount — a surcharge on Part B and D for higher-income enrollees. More.
MA OEP
Medicare Advantage Open Enrollment Period — January 1 to March 31.
Medigap
Medicare Supplement Insurance. Pays your share of Original Medicare cost. More.

P–Z

Part A
Hospital insurance. More.
Part B
Outpatient and doctor insurance. More.
Part C
Medicare Advantage. More.
Part D
Prescription drug coverage. More.
PPO
Plan that allows out-of-network care at higher cost.
Prior authorization
Plan approval required before certain services. More.
SNP (Special Needs Plan)
An Advantage plan for specific conditions, dual eligibility, or institutional needs. More.
Star Rating
Medicare's 1–5 scale for plan quality. More.

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