Will I Be Penalized for Not Signing Up for Medicare at 65?

You may be approaching retirement age, and trying to keep on top of key deadlines to sign up for Medicare to take full advantage of your rights and privileges as a Medicare beneficiary and avoid paying any penalties. While it is true you may be penalized for not signing up for Medicare Part B on time, it is also entirely possible to avoid having to.
 
This article will detail what the Part B late enrollment penalties are and how you can avoid them.

What are the Medicare Part B late enrollment penalties?

Generally speaking, if you do not sign up for Medicare on time, you may have to pay a 10% surcharge on Medicare Part B premiums for each year you go without coverage starting the month you’re eligible for coverage.¹
 
You'll have to pay this penalty each time you pay your premiums as long as you have Part B. The longer you wait to sign up for Part B coverage, the more the penalty continues to increase.¹
 
To prevent having to pay Medicare Part B late enrollment penalties, sign up for Medicare when you’re first able.

When am I first eligible to enroll in Medicare?

Usually, during your Initial Enrollment Period (IEP) is when you’re first able to sign up for Medicare.
 
Your IEP lasts for seven months:²

• three months prior to when you turn 65,
• the month you turn 65, and
• three months after your turn 65.

Some Seniors may also choose to delay signing up for Medicare Part B and keep their current group health insurance coverage, which you’re able to do provided you have coverage under a group health plan through an employer with 20 employees or more.³
 
If this applies to you, you’ll sign up for Medicare Part B during something that is called a Special Enrollment Period, or “SEP.”

Special Enrollment Period for when you leave your job after turning 65 and have delayed enrolling in Medicare.

You get an eight-month SEP to sign up for Medicare when you leave your job after turning 65.² Signing up during this SEP ensures you will not have to pay Medicare Part B premium surcharges.
 
You’re also eligible to sign up for Medicare during this eight-month SEP if you delayed enrolling in Medicare Part B because you were covered under your spouse’s employer-provided group health insurance.²

Avoid penalties for not signing up for Medicare Part B.

Generally speaking, you may have to pay a 10% surcharge on Medicare Part B premiums for each year you go without signing up for Medicare Part B coverage starting the month you’re eligible for coverage.¹
 
You'll have to pay this penalty each time you pay your premiums as long as you have Part B. The longer you wait to sign up for Part B coverage, the more the penalty continues to increase.¹
 
Avoid these penalties by signing up for Medicare Part B during your Initial Enrollment Period (IEP) or, if it applies to you, your Special Enrollment Period (SEP).
 
Learn more about Medicare at medicare.gov, and speak to a licensed insurance agent to get one-on-one help navigating the complexities of Medicare.
 
Sources:

1. medicare.gov, Part B late enrollment penalty, 2021
2. medicare.gov, When does Medicare coverage start?, accessed November 2021
3. medicare.gov, Working past 65, accessed November 2021

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