Jack's Blog on Medicare Plan Choices

Medicare Late Enrollment Penalties (LEP) sound scary, but they are easily avoidable if you stay on top of your Medicare coverage. Let’s look at the penalties and how you can avoid them. Don’t panic, but late fees can follow you for life.

What are Medicare Late Enrollment Penalties?

Late Enrollment Penalties are fees for delaying or denying Medicare coverage, meant to encourage timely enrollment. There are different rules for Part A and Part B.

Medicare Part A Late Enrollment Penalty

If you have to pay for Part A and sign up late, your monthly premium can increase by 10% for each year you delay. This fee lasts twice the number of years you delayed. For example, a two-year delay means four years of increased fees.

Medicare Part B Late Enrollment Penalty

If you miss your initial eligibility for Part B, your premium can increase by 10% for each 12-month period you could have had Part B. Unlike Part A, this penalty lasts as long as you have Medicare.

Does Medicare Part D have penalties?

Yes. If you go 63 days or more without Part D or equivalent coverage after your Initial Enrollment Period, you may owe a late enrollment penalty. This penalty is added to your monthly Part D premium for as long as you have Medicare drug coverage.

How do I avoid Medicare penalties?

1. Sign up at 65: Enroll on time to avoid penalties.
2. Credible coverage: If you have health insurance through employment, ensure it’s recognized by Medicare to waive penalties.

Minimum Acceptable Coverage

Medicare Part A is the minimum acceptable coverage. Basic plans, such as some Medicare Advantage plans with $0 premiums, can meet requirements for Parts B and D.

What happens if I decline Medicare?

Declining Medicare can lead to significant late enrollment fees if you enroll later.

Conclusion

To avoid penalties, enroll in Medicare on time or ensure you have credible coverage. Review your options carefully to protect your future self. If you have questions or need help comparing plans, please reach out to me.

I am a “PlanEnroll” partner and can help you compare multiple insurance carriers. Neither PlanEnroll nor I are endorsed by CMS, DHHS, or any other government agency.

Before choosing an Advantage or Supplement plan, ensure you have a thorough understanding of Medicare itself. When it’s time to explore your options, don’t fall for a sales pitch from a single company or an agent representing only one provider.

At “More Plans More Choices,” I can provide you with side-by-side comparisons from various insurance carriers. More carriers plus more plans equals more choices.

Call me toll free at (888) 883-6074