Late Enrollment in Part B and Late Enrollment Penalty

If you read our previous article on how to enroll in MedicareYou may recall that most people qualify for Part A hospital coverage free of charge and therefore enroll immediately; some people choose to delay enrollment in Medicare Part B.

Medicare Part B takes care of your medical services. It has a monthly premium for most people, and this year 2021 it is $148.50. Those with higher incomes may pay more for this part. Because of this cost, many people choose to delay their Part B enrollment. In some cases, this may be the right choice, but if you are not well aware and do not act appropriately it can result in a costly mistake.

Penalty for late registration

Under Medicare guidelines, Medicare-eligible individuals may delay Part B enrollment ONLY if they have group health plan coverage through an employer or their spouse's employer. Those who delay Part B and do not have group plan coverage through an employer will be subject to a late enrollment penalty. The Part B late enrollment penalty is 10% for each year you delay enrollment.

For example, since the Medicare Part B premium for most people is currently $148.50 per month, if you delay enrollment for one year and you had no health coverage through an employer, you would pay an additional 10%. If you delay for two years, a 20%... three years, a 30%... A simple mistake like that can end up costing you hundreds of dollars more per year in unnecessary expenses, and that's not including the likelihood that your Part B base premium will increase over time.

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

What if I have group insurance?

Now, if you are enrolled in an employer-sponsored group plan when you are eligible for Medicare and are satisfied with it, then delaying Part B may be the right decision, but ultimately it depends on the numbers. It is in your best interest to talk to an experienced agent who can help you compare the costs and benefits of your employer 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, contact one of our licensed 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 option and generally the best option. In most cases, if you have a health plan with a job, you will not get any additional benefit by enrolling in Medicare Part B. You will only be an additional expense when you pay the Part B premium. You will only be an additional expense when you pay the Part B premium, but you will not receive additional benefits.

Medigap open enrollment

In addition to being a waste of money, you will end up wasting your rights to the open enrollment period for a Medicare supplement or Medigap policy. ¡¡¡¡¡Preserve care, very important!!!!! When you first enroll in Part B, you get a special open enrollment period that lasts six months and allows you to enroll in any supplemental or Medigap plan without being held accountable for 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 are up, you will always be subject to medical qualifications when shopping for a Medigap plan.

For more information on Medigap plans, please see our complete video series at YouTube that cover all available Medigap policies, or simply call us at 855-GO-AVILAthat is 855-462-8452 to speak to one of our authorized agents. Or you can simply click the button below to request information now.