Don't Let The Rules For Signing Up For Medicare Catch You Unaware

Posted on: 9 September 2016

Even if your full retirement age for filing for Social Security retirement benefits is older, you can still sign up for Medicare at age 65. Although you can elect to postpone enrolling in this federal health insurance program until sometime after age 65, depending on your reason, you can be penalized for signing up for the health plan late. Because that penalty can cost you for the remaining years of your life, it's essential for you to be clear on the rules for enrolling in Medicare.

General Enrollment Guidelines

You are eligible to enroll in Medicare at age 65. While you may choose to sign up in the month you turn 65, you also have the option of signing up in one of the 3 months immediately preceding the month of your birthday or in the 3 months following.

If you enroll in Medicare in your birth month, your coverage begins the next month. However, enrolling after your birth month delays when your coverage begins. For instance, if you enroll in the month after your birthday, your coverage doesn't begin for 2 months. Likewise, if you wait to enroll until the second or third month after your birth month, your coverage will be delayed longer.

If you don't want to be uninsured for a time, enroll in Medicare sometime in the 3 months before your birth month. That way, your coverage will begin the month you turn age 65.

Enrollment Without Penalties After Age 65

If you're still working after age 65 and continue to receive health insurance coverage through your employer or your spouse's employer, you can postpone signing up for Medicare and not have to pay the penalty for enrolling late. When you are ready to sign up, you have 8 months to enroll without penalties beginning with the month your employment ends or you are no longer covered by an employer health plan, whichever occurs first.

By enrolling in the month your employment is terminated, your Medicare coverage is effective as of the first day of that month. If you enroll in one of the 7 months following the month your employment ended, your Medicare coverage is not effective until the month after you enroll.

Late Enrollment

If you are age 65 or older and don't sign up for Medicare during the initial enrollment period or special enrollment period because you were working and covered by another health plan, you can still enroll, but penalties may apply for enrolling late in Medicare Part B coverage. You also must enroll during the annual open enrollment period – January, February, and March. This may result in a gap in health insurance coverage since your Medicare coverage won't be effective until July 1 of the enrollment year.

Once you are enrolled, a 10 percent late fee penalty will be applied to your Medicare premiums for every year you postponed enrollment. The penalty applies for as long as you pay premiums for Part B coverage.

For more information, contact Continental Insurance Agency, LLC or a similar company.

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