If you don’t apply for your Medicare benefits as soon as you are eligible, you may be faced with late enrollment penalties. To avoid late enrollment penalties, make sure you apply at the right time. Here is what you need to know to avoid late enrollment penalties.
Medicare Late Enrollment Penalty Guide
The most costly penalty is the late enrollment penalty enforced on people who delay enrollment in Medicare Part B. For each 12-month period that you wait to enroll in Medicare Part B after the initial enrollment period passes, you will be subject to a 10% increase in your Part B premiums. This penalty is permanent and can be placed on you for as many years as it takes you to enroll. If you are enrolled in Medicare because of a disability, you will no longer be required to pay the premium penalty once you turn 65.
If you enroll in a Part D prescription drug plan late, you may be subject to a late enrollment penalty as well. For Part D, the late enrollment penalty is a 1% increase in premiums for each month you wait to enroll. Usually, you will have to pay the penalty for each month that you have Medicare, though if you have a disability you will not be required to pay the penalty after you turn 65.
When To Apply For Medicare
The best time to apply for Medicare is when you are first eligible. This is the time where you are least likely to incur late enrollment penalties, therefore Medicare professionals often encourage prospective applicants to apply as soon as their initial enrollment period begins. The Initial Enrollment Period begins 3 months before your 65th birthday month and ends 3 months after it. The period includes your 65th birth month meaning it is a total of 7 months. During this period, you can apply for all forms of Medicare and in some cases are able to do so with certain advantages.
Apply For Medicare
Don’t wait to apply for Medicare if you are eligible. If you need help securing Medicare benefits, reach out to the experts at The Fussell Group Insurance Advisors. We can help you determine whether any late enrollment penalties are applicable to your application and help you avoid them if possible. Contact us now to schedule a consultation.