Will I Avoid Medicare Enrollment Penalties?
The Medicare program can provide healthcare for elderly or disabled individuals at a greatly reduced cost. When an eligible person applies for Social Security, they are automatically enrolled in Medicare Part A & B. If you delay Social Security benefits, how can you make sure you will not be penalized for late Medicare enrollment?
Do you plan on enrolling in Medicare during the Initial Enrollment Period?
If you enroll during this period (3 months on either side of your 65th birthday), you will avoid enrollment penalties. If you do not plan to enroll in this period, read on for exceptions.
Do you or your spouse have group health insurance and still work?
If not, your late enrollment penalty for Medicare Part B consists of 10% surcharge over the national base amount for each year you delay enrollment. If you or your spouse are covered by group health, move on to the next question.
Are you or your spouse on a post-retirement plan or a plan with an employer that has less than 20 employees?
If you are, you likely have to still enroll in Medicare. If you are on a plan with an employer that has greater than 20 employees, move on to the final question.
Did you enroll in Medicare during the Special Enrollment Period?
The Special Enrollment Period ends 8 months after your group coverage ends or you stop working, whichever comes first. If you have enrolled during this period, you will not be subject to penalties. If you do not enroll until after this period, late penalties may apply.
If you’ve made it this far, you may be interested in this flowchart which details Medicare enrollment penalties.
If you would like to schedule a call to talk about planning strategies that incorporate Medicare, please give us a call at 303-440-2906 or click here to schedule a time to speak with us.
Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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