Should I Enroll In Medicare?
Sometimes this is the most confusing part of Medicare when you are new. Here we bring together all the information to make the decision easier.
Part B Enrollment
How Can I Sign Up For Part B of Medicare?
You have a few options when it comes to singing up. You will always sign up for Part B with Social Security. We list your options to do so below.
Sign Up Online
This is the easiest method if you're comfortable with your computer. You can sign up online by clicking on the icon above.
Sign Up By Phone
You can also call social security to get signed up for Part B.
Social Security Office
You can visit your local social security office to sign up for Part B if that's what you're most comfortable with.
There are specific times you can sign up for Medicare coverage. It’s important you utilize these enrollment periods correctly.
When Can I Sign Up For Medicare?
01.
Automatic Enrollment
Automatic enrollment will occur if you’re already taking Social Security payments. If this happens, they will automatically deduct your Part B premium from your Social Security check.
02.
Initial Enrollment Period (IEP)
This period includes the three months before you turn 65, the month you turn 65, and the three months after you turn 65. You can sign up for your Part B & enroll in any other Medicare related coverage you desire during any of these months.
03.
General Enrollment Period (GEP)
This period is mostly for those who missed their IEP & weren’t taking their Social Security income so didn’t get automatically enrolled. This period occurs between January 1st & March 31st every year. During this enrollment period, anyone eligible for Part B can sign up for it. However, the coverage will only become effective in July of the year the enrollee uses this enrollment period.
04.
Special Enrollment Period (SEP)
This enrollment period does not occur based on calendar events but instead because of something that is “special” that has happened to you individually. There are a few different kinds, but for the purposes of signing up for Part B this will generally occur because of loss of your prior group coverage. This will trigger an 8 month period where you can sign up for Part B regardless of when you lost the coverage.
We recommend you call your local social security office to find out what you’ll need to submit in order to be able to use your SEP.
enrollment advice
Curious about when to enroll? Here are a few common scenarios & factors to weigh when considering if you should enroll.
There are penalties if you do not enroll
If you do not sign up for Part B & Part D when you are eligible there will be a financial penalty for you when you do decide to enroll in your Medicare coverage.
Part B Penalty – 10% added premium for the entire time you have Part B for every year you did not enroll that you could have.
Part D Penalty – 1% national average monthly premium for every month that you did not enroll that you could have.
These penalties do not apply if you have creditable coverage.
Do you have creditable coverage?
It’s important to understand what coverage you can have that excludes you from needing to enroll in Medicare, even if you are eligible. For most people, this is going to be group coverage that you have with an employer you still work for. However, this is only going to be true if your company has 20 or more employees.
Another form of creditable coverage that you can have, for Part D only, is Veterans Assistance drug coverage. While there are other forms of creditable coverage, they are very rare. If you don’t have these forms of coverage, you can double-check if you have creditable coverage by clicking here. You will most often be told by your insurance company if your plan is considered creditable or not.
Please note that COBRA, ACA, or most forms of retirement coverage are not going to be considered creditable coverage.
If I have an HSA what should I do?
If you enroll in Medicare Part A and/or B, you can no longer contribute pre-tax dollars to your HSA. You should change your contributions to zero dollars the month your Medicare becomes effective. However, you may continue to withdraw money from your HSA after you are enrolled in Medicare to help pay for medical expenses, such as deductibles, premiums, copayments, and coinsurances. If you use the account for qualified medical expenses, its funds will continue to be tax-free.
Whether your HSA is considered creditable coverage will most likely depend on the size of your company. Generally, if you have fewer than 20 employees at your company your coverage will not be considered creditable. Also, in most circumstances, any Medicare coverage you get will be a better financial decision in cost for you over your high deductible plan.
What if I have COBRA/Retirment coverage
These will not be considered creditable most of the time. Also, in general, Medicare coverage will be just as good if not better than your current plan. Because these coverages will likely expire at some point, it will likely be the right move to sign up for Medicare when you are eligible.
Income Related Monthly Adjustment - My Medicare coverage seems expensive!
Sometimes, because your Part B premium can vary with how much income you have, the number can seem overwhelming if how much money you make on paper is not reflected in your reality. For this reason, there is the SSA 44 form (click here to see it.) With this form you can adjust what Medicare thinks you owe, assuming you can prove that it is actually the case you need to pay less.
