Late enrollment penalties can increase your premium by 10% or more

 

Nobody wants to spend more than they have to on their health care coverage (or anything else, for that matter). So if you’re eligible for Medicare, make sure you’re enrolled in Medicare Part B (Medical Insurance) and Medicare Part D (prescription drug coverage). If you wait too long, you will end up paying more than you should.

 

Why There’s a Penalty

It takes a lot of money and resources to run Medicare. But making sure that Medicare is available to everyone who needs Medicare today, and in the future, is something from which we’ll all benefit. That’s why enrolling in Medicare Part B and Medicare Part D as soon as we are eligible is so important.

 

The reason is simple, if everyone waited until they were sick to enroll in Medicare Part B or Medicare Part D, Medicare would never be able to sustain itself. The cost of paying for care for individuals who are ill and/or require expensive medications would far outstrip the amount of Medicare money taken in by Medicare in the form of Medicare premiums. So Medicare needs everyone to begin paying their Medicare premiums for Medicare Part B and Medicare Part D as soon as they are eligible so there is enough money to care for everyone when they need it.

 

Understanding Enrollment in Medicare Part B

For most people, enrollment in Medicare Part A and Medicare Part B is automatic. When you turn 65, and start receiving Social Security or Railroad Retirement Board benefits, you are automatically enrolled in Medicare Part A and Medicare Part B.

 

There are instances, however, when you may not be enrolled in Medicare Part B. This may be because you, or your spouse, have other health insurance through an employer. Or maybe you had Medicare Part B at one time, and then dropped it when it you got other insurance.

 

Whatever the case, if you have no other insurance and you’re eligible for Medicare Part B, you must enroll to avoid a penalty.

 

Understanding Enrollment in Medicare Part D

Medicare Part D, Medicare Prescription Drug Coverage, is different from Medicare Part B in two important ways. First and foremost, enrollment in a Medicare Prescription Drug Plan (MA-PD) is never automatic. Secondly, the only way you can get a Medicare Prescription Drug plan is through a private insurance carrier.

 

Unlike Medicare Part B, premiums for Medicare Prescription Drug Plans will vary between different Medicare insurance carriers. One company may even have several different Medicare drug plans, all with different Medicare premiums and Medicare coverage levels.

 

Add to that the fact that not all insurance companies offer Medicare plans in all states or areas, and it really starts to sound confusing. Fortunately, there are a lot of resources available to help you find the right Medicare plan. And remember, if you’re eligible for Medicare Part A and Medicare Part B and don’t have creditable prescription drug coverage from an employer or other source, you’re eligible for Medicare Part D.

 

How Much is the Late Enrollment Penalty for Part B?

For every 12-month period you don’t enroll in Medicare Part B when you’re eligible, you’ll pay an extra 10% of your monthly Medicare premium. If you didn’t enroll for two years, for example, you’d pay a Medicare Late Enrollment penalty of 20% per month. Worst of all, you will continue to pay that penalty for as long as you have Medicare.

 

You can use Medicare.gov’s Medicare Part B Late Enrollment Penalty Calculator to get an idea of what you might have to pay. Also, keep in mind that Medicare has some special enrollment periods, which may help you avoid a Medicare Part B late enrollment penalty.

 

How Much is the Late Enrollment Penalty for Part D

Calculating the Medicare late enrollment penalty for Medicare Part D is a bit more complicated, in part because Medicare Part D premiums aren’t standard. In addition, you can be penalized anytime you go a period of 63 days or more without a Medicare prescription drug plan or some other creditable coverage (from a former employer, for example).

 

The penalty itself is calculated by multiplying 1% of the national base beneficiary premium by the number of full months you were eligible for Medicare coverage, but didn’t enroll. You can learn more about the Medicare Part D late enrollment penalty at Medicare.gov.

 

If You’re Eligible, Enroll in Part B and Part D Today

If you are eligible but have not yet enrolled in Medicare Part B or Medicare Part D, getting started is simple. Call 1-855-417-5205 to find out your options for Medicare Part B.