Do you know about the Part B Late Enrollment Penalty?
As mentioned in our previous blog, Medicare's Initial Enrollment Period is period that begins 3 months before you turn 65, includes the month you turn 65 and ends 3 months after you turn 65. If you don't enroll in Medicare Part B during this 7-month period when you're first eligible, you will have to pay a late enrollment penalty once you do enroll.
The late enrollment penalty will cause your Part B premium to increase by 10% for each year you could have had Part B, but didn't enroll. The longer you go without Part B, the greater the penalty will be.
There are few exceptions where you might be able to avoid the penalty. If you choose not to enroll because you are still working or you have coverage through your spouses' insurance, you can delay your enrollment in Part B and avoid the penalty.
Similarly, there is also a late enrollment penalty for prescription drug coverage if you neglect to enroll during your Initial Enrollment Period. We will be discussing this penalty in future blogs so make sure to check back often! If you think you may have missed your Initial Enrollment Period, feel free to contact us. We can help determine whether or not you're exempt from these penalties.