Medicare Part B Penalty
Crowe and Associates wants to make sure that you are aware that there is a Medicare Part B Penalty. In most cases, if you don’t sign up for Part B when you’re first eligible, you will have to pay a late enrollment Medicare Part B penalty. Medicare will be charge you this penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it.
How do you calculate your premium penalty? Let’s say you turned 65 in 2009, and you delayed signing up for Part B until 2016. If you did not have employer insurance that allows you to delay enrollment. Your monthly premium would be 70 percent higher for as long as you have Medicare (7 years x 10 percent). Since the Medicare Part B premium in 2016 is $121.80, your monthly premium with the penalty would be $207.06 ($121.80 x 0.7 + $121.80).
Note: Although Medicare calculates the penalty you pay by using the standard Part B Premium. Your Part B premium amount is based on your income. Medicare then adds the penalty amount to your actual premium amount.
To learn more about avoiding the Medicare Part B penalty, or how to navigate the Medicare enrollment process, call the office at 203-796-5403 or email us at [email protected] We are leading Medicare specialists and are here to help. There is never a fee for our advice.