Medicare Part B Explained — also called “Medical Insurance” — covers doctor visits, outpatient care, preventive services, and durable medical equipment. At Diversified Insurance Brokers, we help you understand how Part B fits with your broader retirement plan, what it costs, and how to avoid unnecessary penalties or coverage gaps.

What Medicare Part B Covers

Part B focuses on outpatient and preventive services that keep you healthy and manage chronic conditions. Coverage includes:

• Doctor and specialist visits
• Outpatient surgery and diagnostic tests
• Preventive services like mammograms, colonoscopies, and annual wellness visits
• Emergency room care not resulting in hospital admission
• Durable medical equipment such as walkers or oxygen supplies
• Limited home health care for eligible beneficiaries

Medicare Part B works hand-in-hand with Medicare Part A to provide full hospital and medical protection. Together, they form the foundation of Original Medicare.

How Much Does Part B Cost?

Unlike Part A, which is often premium-free, Part B requires a monthly premium that can vary based on income. Most people pay the standard premium set annually by Medicare. Higher-income individuals (those with an IRMAA surcharge) may pay more. In addition to the monthly premium, there’s a small annual deductible, after which Medicare typically covers 80% of approved services.

Because costs can change yearly, it’s wise to review your coverage and income brackets annually. Our advisors can help determine whether adding a Medigap or Medicare Advantage plan will lower out-of-pocket expenses.

When to Enroll in Medicare Part B

You become eligible for Part B at age 65 (or earlier for certain disabilities). If you’re already receiving Social Security benefits, you’ll be enrolled automatically. Otherwise, you’ll need to sign up during your Initial Enrollment Period — a seven-month window that begins three months before your 65th birthday. Missing this window can lead to lifetime penalties, so timing matters.

If you’re still working and have employer coverage, you can often delay Part B without penalty. Once your employment or coverage ends, you’ll have a Special Enrollment Period to sign up penalty-free. For detailed guidance, see How to Get Medicare While Working.

How Part B Works With Other Coverage

Many retirees pair Medicare Part B with other policies for greater protection:

• Medigap (Supplement) Plans: Cover the 20% coinsurance and deductibles Medicare doesn’t pay.
• Medicare Advantage (Part C): Combines Part A, B, and often D (prescription drug) coverage under one plan, knows as Medicare Part C.
• Employer or Union Plans: If you or a spouse are still working, coordinate benefits to avoid overlap or penalties.

Our licensed advisors will review your entire health and retirement portfolio — including income, existing coverage, and retirement goals — to ensure your Medicare choices complement your broader financial plan.

Medicare Cost Estimator

Use our quick calculator to compare coverage and see how your premiums and medical expenses might look under different Medicare setups.

Coordinating Part B with Lifetime Income

Understanding how Part B premiums interact with your retirement income can help minimize taxes and avoid IRMAA surcharges. Consider modeling your income streams using the lifetime income calculator below to see how annuity or pension income may affect your Medicare costs.

Why Work with Diversified Insurance Brokers

Since 1980, our family-owned agency has helped clients navigate Medicare, retirement, and insurance planning. We’re licensed in all 50 states and work with 75+ carriers to ensure your coverage is tailored, compliant, and cost-effective. From explaining Part B premiums to integrating annuities and long-term care, we’re your one-stop Medicare and retirement partner.

Related Pages

• Medicare Part A Explained
• Medigap vs Medicare Advantage
• How to Get Medicare While Working
• Medicare Part D Donut Hole