If you do not enroll in Medicare when you are first eligible, you may pay penalties when you later enroll. Most people do enroll in Medicare during their Initial Enrollment Period because this is when they first become eligible. This period begins three months before turning 65 and ends three months after your 65th birthday.
Even if you do not have many healthcare costs at the moment, it is advisable to enroll for Medicare when you become eligible to avoid the late enrollment fee.
A late enrollment fee is an extra amount that is added to your Medicare premiums and could be permanent. In most cases, However, in certain situations, you can delay your Medicare enrollment without any penalty.
Want to find out how? We’ve got the answers for you in this article!
Part A Late Enrollment
Medicare Part A is premium-free for most people. This means you can enroll in Part A without having to pay premiums if you have paid up to 40 quarters (ten years) in Medicare taxes when you were still working. Apart from that, you can still enroll in Part A during your Initial Enrollment Period even if you do not qualify for free premiums.
If you delay your Part A enrollment, you may have to pay a late enrollment penalty when you later enroll. For Part A, the late enrollment penalty is 10% of the cost of the premium. This late enrollment fee will be active each month for twice the number of years you were eligible for Part A but did not enroll. For example, if you delayed enrollment in Part A for 2 years, you will pay a late enrollment fee each month for four years.
Part B Late Enrollment
Like Part A, you can enroll in Part B during the Initial Enrollment Period if you are not automatically enrolled. If you do not enroll in Medicare Part B during your Initial Enrollment Period, you will pay a late enrollment fee for Part B when you later decide to enroll. Unlike Part A, the late enrollment fee for Part B is permanent.
The late enrollment fee for Part B will be added to your monthly premium. This results in a 10% increase for each year during which you were eligible but delayed your enrollment. However, people who qualify for a Special Enrollment Period for Part B will not pay the late enrollment penalty. An example that can qualify you for a Special Enrollment Period includes having creditable health coverage from your employer during the time of your Part B eligibility.
Part D Late Enrollment
For Medicare Part D, you become eligible to enroll without penalty if you enroll within 3 months after your Original Medicare coverage kicks in. If you delay your enrollment, you will pay a permanent penalty that will, of course, be added to your Part D premium.
For more information about enrolling in Medicare in Florida and Alabama, specifically in areas such as Dothan, Enterprise, Pensacola, Pace, and Tallahassee, contact us today at 334-441-3905. We can help you get the coverage you need and avoid these late enrollment penalties!