The first waves of baby boomers started turning 62 in 2008. Retirement, here they come!

According to research from the National Association of Insurance Commissioners (NAIC), many of these new retirees are confused about their postretirement health insurance options, including their Medicare eligibility.

Medicare 101

Medicare is the largest health insurance program in the nation, covering more than 40 million Americans. The federally funded program is available to Americans 65 years of age and older, regardless of their eligibility for Social Security retirement benefits.

Some Americans younger than 65 may qualify for Medicare, depending on their physical health. For example, those who are disabled may be eligible before reaching their 65th birthday.

Medicare is divided into four parts, each with different coverage options, including hospital insurance (Part A), medical insurance (Part B), Medicare Advantage (Part C), and prescription drug coverage (Part D). Although many Americans do not pay a monthly premium for Medicare Part A, individuals seeking additional coverage options under Parts B, C, and D typically pay a monthly premium.