18 February Medicare Penalties and How to Avoid Them February 18, 2017 By Editor Medicare Supplement medicare, medicare supplement, medigap, seniors 0 Part A Penalty Most people who are eligible for Medicare are entitled to Part A free of cost. If you or your spouse worked, you paid the Medicare tax with the FICA deduction from your paychecks. If you or your spouse did not work long enough, you can still get Part A by paying a premium. If you neglect to get enrolled during your Initial Enrollment Period*, you will have to pay a late penalty premium equal to 10% of the original Part A premium when you do enroll. This late penalty premium will be instated for twice the number of years you were eligible for Part A but neglected to enroll. *7-month period that begins three months before the month you first become eligible for Medicare (age 65) and ends three months later. Part B Penalty If you enroll in Medicare Part B late, you must pay a late penalty premium for as long as you have Part B. This premium goes up 10% for every year that you were eligible for Part B but did not enroll. If you qualify for a Special Enrollment Period, or SEP, you may not have to pay the late penalty premium. If you were still receiving health insurance through your job when you first were eligible for Medicare Part B, you could qualify for an SEP. Part D Penalty If you are thinking about enrolling in a Medicare Part D drug plan, you must do so within 3 months of enrolling in Part A and/or Part B. If you enroll after this 3 month period, you will have to pay a late penalty premium. This penalty is equal to 1% of the average monthly Part D premium (1% of $35.63 in 2017) times the number of months you were late by. This penalty lasts for as long as you have Part D. You may qualify for an SEP if you had creditable drug coverage when you turned 65. These creditable plans could be through your spouse’s job, retiree coverage, or coverage through the Veteran’s Administration. Visit ManhattanLife's Medicare Supplement for plan information. Related Posts A Few Things Medicare Won't Cover, and How to Pay for Them Medicare does not cover for things like dental, glasses and hearing aids, and long term care. We detail each category and explain how to pay for them. Medicare Supplement Plans and You - Know Your Options If you return to Original Medicare during the Annual Election Period (October 15th – December 7th), you could be eligible for a Medicare Supplement plan. Know your options. 17 Reasons Consumers Choose Medicare Supplement Over Medicare Advantage A list of the main reasons consumers choose a Medicare Supplement plan over a Medicare Advantage plan. Myths about Medicare Myths about Medicare range from Medicare bankruptcy, healthcare costs, your Medicare Open enrollment, and more. What the 2020 Medicare Annual Election Period (MAEP) Means for You Also called Fall Open Enrollment, the Medicare Annual Election Period is one of two important periods for individuals eligible for Medicare. How Much Can a Medigap Plan Save You When Medical Bills Stack Up? We Did the Math. A Medicare Supplement plan, also called a Medigap plan, is designed to cover the healthcare costs that Medicare won't. In order to show how important a Medigap plan can be in protecting you from out-of-pocket costs, we calculated how much money a Medigap plan would save you in the event of an unlikely, yet completely possible, serious medical issue. Comments are closed.