There are 2 possible penalties associated with Medicare!

1) If you do not sign up for Medicare B when you are initially eligible.Most people are eligiblefor Medicare Part A (Hospital) and Part B (Medical) on the first of the month they turn 65. However, if someone's birthday falls on the first of the month -they are eligible the first of the prior month. This is called your Initial Enrollment Period (IEP). If you are self-employed, retired, unemployed, on cobra, orworking for a group with less than 20 employees; it is recommended you enroll in Medicare Part B nolater than 90 days from the month following your birthday to avoid a penalty.

With the situations mentioned above, Medicare becomes your primary carrier at age 65. There is acharge for Part B of Medicare, currently $170.10 per month for most individuals. The late enrollment penalty for Part B takes the standard premium and increases it by 10% for each 12 monthperiodyou should have had Part Band didn't.

If someone plans to continue to work pass the age of 65 and is on a group plan or spouse's plan with more than 20 employees, they have the option to defer Part B of Medicare and apply for it at a later date. The group plan would be considered credible coverage and you would have up to 8 months from your group coverage ending to enroll in Medicare Part B. This is called a Special Enrollment Period (SEP). There are 2 forms that need to be completed and submitted to Social Security to apply for PartB in this situati on.

2) If you do not sign up for a Medicare Part D drug plan or an Advantage Plan that includes Part D when you are eligible for Part A and /or Part B of Medicare. If Part A and B of Medicare start at the same time -you have no later than 90 days from the month following your birthday to enroll. If youstart Part B later because you had credible coverage, then you have 63 days from when your crediblecoverage ends to enroll.

The penalty is 1% of the National average cost of the drug plans for each year you do not have coverage and is a permanent penalty. There is an Annual Enrollment Period (AEP) between 10/15 & 12/7 of each year when someone can enroll for the first time or make changes to their existingplan.

There are some exceptions when someone is not subject to a penalty. For example; if you have VA Benefits, have group coverage that is as good as Medicare Part D, or is someone qualifies for LowIncome Subsidy (LIS/ Federal program that helps with drug costs).

3)  When someone becomes eligible for Medicare prior to age 65 due to a disability they can stillbe responsible for making sure they are enrolled to avoid certain penalties. If you havequestions or concerns, please feel free to reach out to our office for further details dependingon your situation . Our office has worked with Medicare for over 20 years.