Michael M Insurance Services Blog
Your Enrollment period for Medicare begins 3 months before your
birthday and continues through your birthday month plus another 3
for a total of 7 months. If you are definitely going to sign up do it
during the first 3 months to ensure it begins on the first day of your
birthday month(Which is the earliest it can start). Waiting will delay
the start. The choice to sign up or not depends upon your current
Employer Coverage - If your employer has over 20 employees
then the coverage is considered “creditable” which means that is
as good if not better than Medicare and you don't have to sign up.
Most people sign up for Part A because for most people it is Free.
If you have an HSA then it is advisable to not sign up because then
your contributions become taxable. If your employer has less than
20 employees then you will have to sign up. Even if you don’t have
to sign up it is a good idea to ask your Medicare Advisor (me) to
do a comparison between getting on Medicare and keeping your
current coverage. Some company plans have steep deductibles
and are expensive.
State Health Exchange - You will have to sign up.
Union Coverage - It is advisable to connect with Human
Resources because some unions require members to sign up
when first eligible for cost share reasons.
Having nothing and doing nothing is not an option(It can be, but
then things will get expensive).
Part A - There are penalties when not having it when you’re
supposed to but everybody signs up because it is free to all that
have worked 40 quarters(10 years) or more.
Part B - Some people blow this off because of the premium. If that
happens and you miss your initial 7 month window then you have
to wait for the Part B enrollment period which is from 1/1 to 3/31
for an effective date of 7/1. The penalty will be 10% of your
monthly premium per year not enrolled. If you waited 2 years to
enroll you would add $34 to your Part B premium for as long as you
Part D - Some folks blow this off because they don’t take Meds. Big
no no. The penalty will be 1% of the national monthly average
premium(About $30) times the number of months you were without
it added to your Rx plan monthly premium.
In short, the individuals that get penalties have nothing and do