The phrase “time is money” is accurate for Medicare as it is for larger business sectors. It’s because not signing for Medicare can lead to penalties, and you might have to continue paying for as long as you have Medicare. The Medicare Part B penalty, in general, can cost you thousands of dollars. So, avoid the risks of the medicare penalty by gaining more insight on the topic.
However, knowing when to enroll in Medicare is necessary so you can eradicate paying more than your share.
Everything You Need To Know About Medicare Penalty
Medical late enrollment can seize some people ignorant. Sometimes they forget to enroll during the Initial Enrollment Period. Occasionally they delay, thinking they will qualify for a Special Enrollment Period as they are still working past 65.
Chances are they don’t have any pertinent information regarding mediocre penalties and end up not having creditable coverage or not qualifying for a Special Enrollment Period at all.
So, take a look at the following points:
The Initial Enrollment Period starts when you are 65 years old. It begins three months before and ends three months after your birth month. Therefore, you have a seven-month window in your hand to complete the signup procedure.
If you are still working and have health insurance coverage from your employer, you should be eligible for Medicare. Are you working in a company that employs 20 full-time employees on average? For that, you can defer your Medicare enrollment to a later date.
This Special Enrollment Period permits you to sign up for Medicare over an eight-month limit. “The time period begins either the day you leave your employer or the day you lose your employer-sponsored health plan, whichever comes first.” – the words of a professional health insurance agent.
However, to avoid a medicare penalty, don’t assume that you are eligible for a Special Enrollment Period. Check with your employer or contact our professional to ensure that you do not get caught with a late medicare penalty.
2. Social Security Retirement
The Social Security Retirement and Medicare eligibility used to take place at the same time — YOU CAN APPLY FOR BOTH AT 65 YEARS OF AGE.
If you fall somewhere between these, the Social Security website has a table chart that includes retirement ages as per specific birth years. Therefore, many strong Americans work past 65 years to increase their retirement income.
- Part A Late Penalty
If you delay signing up for Medicare, you will face the Part A penalty. You will have to pay an extra 10% with your monthly premium for twice the number of years as long as you are eligible for Medicare.
The 10% monthly penalty calculation gets multiplied by the current monthly premium. If you have missed your Initial Enrollment Period by 11 months or less, you won’t have to pay for any Part A or Part B penalties. Penalties come under consideration after the completion of 12 months.
- Part B Late Penalty
All the information about Part B Late Penalty is available on Twitter and other social media pages. The information states – Medicare charges an extra 10% each year only if you were eligible for the program but ignored signing up. So, the Medicare Part B penalty adds 10% to your monthly premium each year.
Everyone, whatever their past employment history is, pays for the Part B premium. It means you are responsible for paying a Medicare penalty if you miss the enrollment date.
Therefore, be careful. And, if you are a newbie, you can take professional help as well.
Ways to Avoid Medicare Late Penalties
On Pinterest, you will get impressive ideas on how to avoid Medicare penalties. However, you can also consider the following tips:
Make sure to enroll for the Medicare and health insurance plans during the Initial Enrollment Period when you are first eligible.
If you are competent for a Special Enrollment Period, make sure employer coverage is determined creditable for Parts B and Part D Medicare plans.
Provide written coverage to prove that you have creditable prescription drug coverage.
Don’t worry! You can contact us, and we will help you avoid a medical penalty. You can also visit our Facebook and other social media websites to accumulate more information.