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Medicare charges late enrollment penalties that take some people by surprise. These penalties are designed to discourage older Americans from passing up Medicare coverage and possibly incurring high medical bills down the road. Take steps to avoid these penalties, so you do not have to pay higher Medicare premiums.
You end up paying more for Medicare if you enroll late in Part A (hospitalization), Part B (outpatient services), and Part D (prescription medications).
Initial Enrollment Period
The best way to avoid penalties is to sign up during your initial enrollment period. This is the seven-month period when you first become eligible for Medicare. It begins three months before you turn 65, includes the month you turn 65, and ends three months after you turn 65. You won’t pay any penalties if you enroll in Medicare during this period.
Special Enrollment
You may qualify for a special enrollment period if you have other “creditable” health insurance coverage. This coverage might be through your employer or spouse or a military health benefits program. Make sure the coverage you have is considered creditable for Part B and Part D.
If you qualify for special enrollment, you can sign up for Medicare without a penalty while you still have the other coverage or up to eight months after it ends for Parts A and B. However, you only have 63 days after your additional creditable coverage ends to enroll without a penalty for Part D.
If you need assistance enrolling in Medicare, our friendly agent is happy to help. We can advise you on how to avoid paying Medicare penalties.