Enrolling late in Medicare Parts B and D can lead to permanent penalties. Here are some examples:

• Part B Late Enrollment Penalty: You may be charged a penalty if you don’t sign up for Part B when you first become eligible. This penalty adds 10% to your monthly premium for each year you could have had Part B but didn’t sign up for it. This increased premium continues for as long as you have Part B. Essentially, if you wait two years to enroll after becoming eligible, your monthly premium could be 20% higher than it otherwise would have been.
• Part D Late Enrollment Penalty: For Part D, which covers prescription drugs, the penalty is calculated if you go without Part D or other credible prescription drug coverage for any continuous period of 63 days or more after your initial eligibility period is over. The cost of this penalty is 1% of the “national base beneficiary premium” ($32.74 in 2023, for example) multiplied by the number of full months you were eligible but didn’t have Part D or credible coverage. This extra amount is then added to your Part D premium each month.

To avoid these penalties, it’s critical to sign up during your initial eligibility period unless you have other qualifying healthcare coverage. These penalties are designed to encourage people to sign up when they are first eligible and to maintain continuous coverage.

You can change from Original Medicare to a Medicare Advantage Plan during the Medicare Advantage Open Enrollment Period, from January 1 to March 31 each year. You can switch between Medicare Advantage Plans during this period or go back to Original Medicare. Changes made during this period take effect on the first day of the following month.

If you’re still working at 65 and have health coverage through your or your spouse’s employer, you might not need to sign up for Medicare right away. You can delay Medicare Part B and D without penalty if you have health coverage through your job. Once your employment or employer coverage ends, you have an eight-month Special Enrollment Period to sign up for Medicare, which allows you to avoid late penalties.

No, Original Medicare does not typically cover prescription drugs. You must enroll in a Medicare Prescription Drug Plan, known as Part D, or a Medicare Advantage Plan that includes drug coverage. It’s important to consider this when first eligible for Medicare to avoid paying a late enrollment penalty for Part D.

Choosing the right Medicare plan depends on your specific healthcare needs, financial situation, and the doctors and hospitals you prefer. Original Medicare provides wide access to any provider that accepts Medicare, while Medicare Advantage Plans may offer more benefits like dental and vision care but with network restrictions.

We recommend reviewing your options annually during the Open Enrollment Period from October 15 to December 7, as plans and needs can change. A Medicare counselor or a healthcare provider knowledgeable about Medicare, like those at Prima Medicine, can help you make the best choice.