- At age 65, you become eligible for Medicare.
- If you are already receiving Social Security Benefits, you’ll automatically be enrolled into Medicare.
- If you are not receiving Social Security Benefits, you’ll need to enroll in Medicare.
- If you are still working and your company has 20 or more employees, you are not required to enroll in Medicare and no Late Enrollment Penalty will be assessed.
- If you are still working working and your company has less than 20 employees, you are required to enroll in Medicare Part A (Hospitalization) and Part B (Medical).
- If you are required to enroll in Medicare, when you are first eligible, but you don’t, you will be assessed a Late Enrollment Penalty, when you eventually do enroll.
- The Late Enrollment Penalty applies to Part A, B & D (Prescription Drug Plan).
- The Late Enrollment Penalty for Part A & B is 10% for each 12 month late enrollment period (.83% per month). This Penalty keeps increasing until you enroll.
- The Late Enrollment Penalty is Permanent, meaning you will forever pay more for Medicare, if you enroll late.
- The Late Enrollment Penalty starts after a 63 day Late Grace Period.
- The Late Enrollment Penalty for Part D is 1% per month. This too is Permanent.
- Enrollment Deadlines:
- 3 Months Before you turn 65, you may enroll
- 4 Months After you turn 65, you may enroll.
- General Enrollment Period for Part A and B is January 1 – March 31 of every year. This applies if you missed your Initial Enrollment Period (3 months before turning 65 and 4 months after turning 65), meaning, you have to wait until January 1 to enroll in Medicare Part A and Part B, and Permanently Incur a Late Enrollment Penalty.
- Medicare Advantage Supplemental Plans, also known as Part C, is a separate medical plan that covers what Medicare Part A and B do not cover. Private Medical Insurers provide these plans.
- Medicare Advantage Open Enrollment begins October 15 and ends December 7 of every year.
- Medicare Part A – Hospitalization Coverage.
- Medicare Part B – Medical Coverage.
- Medicare Part C – Optional Medicare Advantage Supplemental Plans,
- Medicare Part D – Prescription Coverage.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, Effort-Less Wealth, Change Your Habits Change Your Life, Rich Habits Poor Habits and “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
Will keep this in mind. Will do absolutely everything I can to make the next 30 years slow and magical, but I. That much time I’ll be 64 and coming up on my enrollment time. Thanks for the great info, as always!
Great information! Clear, concise and to the point. I am 62 and need to know these things. Thanks for posting this!