When and why delay Medicare Part B?

If you read our previous article on how to enroll in MedicareYou may recall that most people qualify for free Part A hospital coverage and therefore enroll immediately. While some people choose to delay their Medicare Part B enrollment, so this part has a monthly premium. In some cases, delaying may be the right choice, but if you are not well aware and do not act appropriately, it can be a very costly mistake.

According to Medicare guidelines, Medicare-eligible individuals may delay Part B enrollment by ONLY if they are covered by a group health plan through an employer or their spouse's employer. Those who delay Part B enrollment and are not covered by an employer group plan will be subject to a late enrollment penalty of 10% for each year they delay enrollment. That is, for one year late it will be a 10% penalty, for two years a 20%, for 3 years a 30% and so on. However, it is important to note that this penalty is permanent, meaning that when you enroll in Medicare Part B after you are late, you will have to pay the current premium value plus the penalty percentage on a permanent basis. It is not a one-time payment.

So, just to reiterate, if you are not enrolled in a group health plan by an employer, you must enroll in Medicare Part B to avoid this late enrollment penalty. Coverage through Medicaid, a retiree plan, COBRA or a plan with the health marketplace. do not qualify to avoid the fine, only a plan of group health by an employer.

Now, if you are enrolled in a health plan through your job when you are eligible for Medicare and are satisfied with it, then delaying Part B may be the right decision. But ultimately, this comes down to the numbers. You'll want to talk to an experienced agent who can help you compare the costs and benefits of your employer's plan with the costs and benefits of switching to Medicare. Medicare usually wins out as a more affordable option, but not always.

If you have questions and need help comparing costs between your employer's plan and Medicare, you can contact one of our authorized agents for assistance.

Finally, if you are covered by a qualified group plan and definitely want to keep it, delaying Part B is a valid and usually the most appropriate option. In most cases, if you have a health plan with work, you will not get any additional benefit by enrolling in Medicare Part B. You will only get an additional expense by paying the Part B premium. This will only be an additional expense in paying the Part B premium, but you will not receive additional benefits. In addition to being a waste of money, you will end up wasting your open enrollment period rights to a Medicare supplement plan or medigap policy.

When you first sign up for Medicare Part B, you get a special open enrollment period that lasts six months and allows you to enroll in any Medicare supplement plan or Medigap policy without having to answer medical questions about your health status. In other words, no company can deny you coverage during those initial six months, but after those six months expire, you will always be subject to medical qualifications when purchasing a Medigap plan.

For more information about Medigap plans, please contact us to speak with one of our authorized agents.

Our local number is 512-520-5957 or you can call us on our toll free number which is 855-GO-AVILA. We are here to serve you.