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Resources to Help You Understand the Medicare Insurance Marketplace

Penalties For Not Enrolling

Many people are unaware of the penalties for not enrolling in Medicare on time. If you are over 65 and not enrolled in Medicare, you may be subject to a late enrollment penalty. This penalty is assessed by the Social Security Administration and is based on the number of months you were eligible for Medicare but not enrolled.

The penalty is applied to your Medicare Part B premium, which you pay for outpatient services. The penalty amount is 10% for every 12 months you were eligible for Medicare but not enrolled.

In addition, if you are not enrolled in Medicare Part A (hospital insurance), you may also be subject to a late enrollment penalty. This penalty is 2% of the national average monthly Part A premium, multiplied by the number of months you were eligible but not enrolled.

The penalty is an increase in your Part B and Part D premiums, calculated based on the months you delayed enrollment. In addition, if you go without Medicare coverage for more than 63 days in a row, you may have to pay a late enrollment penalty when you do enroll.

This penalty is also calculated based on the number of months you went without coverage. To avoid these penalties, enrolling in Medicare during your initial enrollment period is essential. You can also sign up for a Special Enrollment Period if you have other health insurance coverage, such as through an employer, or if you qualify for a hardship exemption.

If you’re unsure when your initial enrollment period begins, or if you have questions about enrolling in Medicare, contact the Social Security Administration.