What is the Medicare Part B penalty
The Medicare Part B penalty is often the result of someone who is eligible for Medicare not understanding the rules. Those who fail to follow them can end up paying the penalties for life. Read the information below to understand who needs to enroll in Medicare Part B and when. We will also review the valid waivers that would allow someone who is eligible for Medicare to waive Part B without a penalty when they enroll in the future.
To see how to calculate your Part B enrollment penalty click here
Eligibility for Medicare A and B
Many people sign up for both Medicare Part A (hospital Ins.) and Part B (medical Ins.) when they turn 65 and are first eligible. There are some possible problems that can occur if you sign up later. Although, in some instances it makes sense to wait to sign up until later.
Because most people do not pay a premium for Part A, this makes it a no brainer to sign up for Part A when you are first eligible for Medicare even if you are still working.
If you choose to sign up for Part B, you will need to pay a premium. For this reason, some people will wait to sign up for Part B.
- Generally, you won’t have to pay a Part B penalty if you qualify for a Special Enrollment Period. Learn more about Special Enrollment Periods.
- You’ll pay an extra 10% for each year you could have signed up for Part B, but didn’t.
- You may also pay a higher premium depending on your income, this is called an IRMAA, watch our YouTube video to understand what a IRMAA is.
More information about signing up for Part B:
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- Your 8-month Special Enrollment Period to sign up for Part B starts when you stop working, even if you choose
- If you lose your job-based health coverage before you or your spouse stop working, you have 8 months to sign up.
- If you want Medicare coverage to start when your job-based health insurance ends, you need to sign up for Part B the month before you or your spouse plan to retire. Your coverage will start the month after Social Security (or the Railroad Retirement Board) gets your completed forms. You’ll need to fill out an extra form showing you had job-based health coverage while you or your spouse were working.
- If you want more coverage, you have a limited time to get it.
- If you miss the 8-month special enrollment period, you will have to wait to sign up and go without Medical coverage. That is a dangerous gamble to take. The penalty you will pay will also continue to grow.
If you miss your initial enrollment in Medicare Part B have two possible election options:
The first is a Part B special election period and the second is the Medicare Part B general election period.
CLICK HERE TO LEARN MORE ABOUT THE MEDICARE GEP
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