If you really need to save your money then you have to avoid the late enrollment penalty of Medicare. There are various reasons for the penalty of the various medicare parts. If you delay your enrollment after your eligibility then you have to pay penalties on a monthly basis with your premium fees. So below are the details about Late enrollment penalty.
Parts of late enrollment penalties and what is it?
A late enrollment penalty is a medical fee that can be charged when you are eligible for the Medicare advantages but you don’t sign up on time. When you must be 65 years old, that is a perfect time to enroll yourself for medicare advantages.
Parts of Medicare late enrollment penalties:–
There are some medicare parts that charge late enrollment penalties:-
- Medicare part A which is covering hospital insurance
- Medicare part B which is covering medical insurance
- Medicare part D which is covering prescription drugs coverage
Medicare part C which is Medicare advantage don’t have this type of charges because these are given by the private insurance companies.
Also, Medicare supplement insurance(Medigap) doesn’t have this type of penalty for any issues. But in this case package cost may go higher if you don’t enroll yourself at the time of your eligibility.
Late-enrollment penalty of medicare part A
Medicare part A is the coverage of inpatient hospital insurance. Most of the cases when you first eligible for the plan it will be automatically enrolled for their plan at no cost. Then you don’t have to pay any penalty.
But when you are not enough eligible for the plan you have to enroll yourself in the right time periods. Then you have to pay on a monthly premium basis.
When you turn 65 or before 65 for any kind of disability you become eligible for any kind of medicare plan. You can enroll yourself during your initial enrollment period, after that you have to pay a penalty.
If you receive social security benefits after working 40 quarters successfully via the government when you turn 65 then you don’t have to take any action about the enrollment procedure.
The late penalty is the 10% of the monthly premium of your plan.
You don’t need to pay this entire life. You just have to pay each month and twice the number of the years when you are eligible for the plan but don’t enroll yourself.
As an example if your age 66 and you enroll yourself in this time(after 1 year) you have to pay your penalty until you turn 68(2 years)
Medicare part B late enrollment penalty
Medicare part B is a medical insurance plan where ambulance services, doctor visits, durable medical equipment may be covered. You are eligible for this plan for 7 months starting 3months before your 65th birthday, including your birthday months that end 3 months after your birthday. It is also known as the initial enrollment period.
If you are eligible for social security benefits, your monthly premium for medicare part B is deducted from your monthly income.
If you don’t enroll yourself in medicare part B premium and you also don’t receive social security benefits then you have to pay late enrollment penalty in monthly basic with the premium.
In Medicare part B you have to pay the penalty throughout your whole life.
Your late enrollment penalty will increase 10% every year in which you are eligible for the plan but you don’t enroll yourself. As an example if you enroll yourself at the age of 67 you have to pay an additional 20%(for 2years delay) extra premium for your entire lifespan.
There is a special enrollment period for those who don’t enroll during the time for some reason like other insurance coverage. To avoid the lifetime penalty one can simply enroll at that time once per year.
Medicare part D late enrollment penalty
When you first eligible for original medicare you are also able to enroll yourself in Medicare part D which is a prescription drug plan.
You don’t have to pay any charges as a penalty if you enroll in this plan just after your Medicare part A & B begins. You have 3 months to sign up on it if you don’t get it the right time then you have to pay a penalty after you start following.
This penalty is around 1% of your prescription drug cost , multiplied by the number of months of enrollment after your eligibility.
In this plan the penalty is permanent till your plan D subscription and it is added with your monthly premium.
You may get a special discount on special enrollment periods. If you don’t want to pay a late enrollment penalty then go and join the plan during the special enrollment period.
To avoid the extra burden of a penalty cost your entire life make sure to enroll yourself in the right plan on time.