Delaying enrollment for medicare does not render you ineligible to enroll at a later date. Typical enrollment is the seven months around when you reach your 65th birthday; three months before, the month of your birthday, and the subsequent three months after that. Missing this initial enrolment period could provide both penalties and benefits. Some people find that they are automatically enrolled in Medicare Part A and Part B as soon as they become eligible to do so. While others, either not collecting social security at the time they turn 65 will not.
Delaying Part A and B Enrollment
Part A is typically premium-free for beneficiaries who have worked for ten years, as such, there is no real benefit to delaying enrollment for Part A; this provides coverage at no additional cost. Part B of Medicare, however, does carry a monthly premium. If you are, however, covered under an employer group healthcare benefit (as long as your current employer group health plan is primary and Medicare is secondary)and this is lost after your initial enrollment period has expired, then you may be eligible to receive a special enrollment period for Part B without penalties.
Delaying the Part B Medicare enrollment without the proper employer benefit in place could result in penalties including, but not limited to, having to pay medical costs yourself out of your own funds or late enrolment penalties in the form of higher monthly premiums.
Delaying Part D Enrollment
The prescription drug coverage element of Medicare is the Part D schedule. This is essential if you wish to receive help with paying for prescription drugs and do not currently have proper employer group coverage which provides this benefit. Part D should only be delayed if group coverage is in place and that group coverage is credible and primary. Delaying enrollment for Part D can also lead to late enrollment penalties for the lifetime of your Part D policy if certain criteria are not met.
When is the Medicare Open Enrollment Period?
This isn’t such an obvious answer as there is an Open Enrollment Period for the Part D and Medicare Advantage Plans between October 15th and December 7th annually. This policy becomes applicable for the following year. Medicare Supplemental Plan can be applied for at any time but could be subject to underwriting.
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
