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.
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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.
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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:
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- 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.
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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.
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Get a Medicare Supplement plan that allows you to choose your doctor.
Our licensed agents can help you pick a plan based on your needs.
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.
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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.
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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:
- medicare.gov, Part B late enrollment penalty, 2021
- medicare.gov, When does Medicare coverage start?, accessed November 2021
- medicare.gov, Working past 65, accessed November 2021