Why is the Medicare General Enrollment period important?
Timing really matters when it comes to exercising your Medicare options. Sure, you can wait until later to join a Medicare plan, but you may face financial disadvantages (such as a late enrollment penalty) for any delay between the time when you first became eligible and the time you enroll.
Many people are confused by the different enrollment periods, so let’s today look at the General Enrollment period. The General Enrollment period is an important date for everybody who is eligible for Medicare. It is made for persons who did not enroll for Medicare Part B (doctors’ services) during their 7-month initial enrollment period (when they first became eligible for Medicare, either because they turned 65, or qualified due to certain disabilities).
The Medicare general enrollment period is each year from January 1 through March 31. If you have rejected Medicare Part B before, or have canceled it, you may enroll again during this period of time. Once you have enrolled, your coverage will start on July 1.
Note that there is a penalty for each 12-month period that you missed to have Part B while you were eligible. Your Part B premium may go up as much as 10 percent, and you will need to pay this extra 10% for all future as long as you stay enrolled (unless you qualify for a Special Enrollment Period (SEP)!
There is also a 10% penalty if you enroll late in Medicare Part A – however this only applies to those who have to pay a monthly premium for Part A, because neither they nor their spouse contributed to Social Security. It does not apply to you if you were automatically enrolled in Medicare because you are receiving Social Security or RRB benefits and don’t have to pay a premium.
If you or your spouse are still working, your Medicare enrollment can be delayed without penalty until the time after the one of you who is still working will stop working.
For more information, you may call the Social Security Administration at 1-800-772-1213 or visit socialsecurity.gov.
