Medicare enrollment can be complex, but understanding the rules is key for those turning 65. Most Americans will enroll in a Medicare plan when they turn 65 and could face penalties for late enrollment. However, if you’re 65 or older and still working with employer-based health insurance, you may not need to enroll immediately.
Medicare consists of two main parts: Part A for hospital insurance and Part B for general medical insurance. There are also supplemental private insurance options for prescription drugs (Part D) and Medicare Advantage plans (Part C). You can enroll during an initial period of seven months around your 65th birthday.
If you miss this initial enrollment period and do not qualify for premium-free Part A, you can enroll during the General Enrollment Period from January 1 to March 31 but may face penalties. If you’re still working, your company employs more than 20 people, and you have work-based health insurance, you do not need to enroll in Medicare until your existing health insurance expires. When you stop working or your employer discontinues its group insurance plan, you have a Special Enrollment Period of eight months to enroll in Medicare without penalty.
Penalties for late enrollment result in increased monthly premiums.
Understanding Medicare enrollment periods
For Part A, you’ll pay an extra 10% for twice the number of years you delayed enrolling.
For Part B, you’ll pay an additional 10% for each full 12-month period you could have had Part B but didn’t enroll. This penalty lasts as long as you have Part B coverage. For Part D, if you delay enrollment and do not have existing prescription drug coverage, you’ll pay 1% more in monthly premiums for every month you delay enrolling.
You can change your Medicare plan during the Medicare Open Enrollment Period from October 15 to December 7. Changes include switching from Original Medicare to Medicare Advantage or vice versa, switching Medicare Advantage plans, and joining, dropping, or switching Part D plans. For those turning 65, the Medicare Initial Enrollment Period is a seven-month window that begins three months before the month you turn 65, the month you turn 65, and three months after turning 65.
If you are not receiving your Social Security check, you need to create a My Social Security Account through Social Security’s website to enroll in Medicare Parts A and B. Resources from the Centers for Medicare and Medicaid Services can help you determine if and when you need to enroll in Medicare. It’s important to understand the various enrollment periods and make informed decisions about your coverage to avoid penalties and ensure you have the right plan for your needs.
- CNET.”Do You Have to Enroll in Medicare at 65 if You’re Still Working?”.
- Yahoo.”Author Q&A: Here’s how to navigate the complex world of Medicare”.
- TribDem.”Toni King | How does Medicare’s fall enrollment affect me?”.