Why delaying enrollment in Medicare Part B could be the right move.

With a few exceptions, you should generally enroll in Medicare three months before your 65th birthday. If you are still working, you can afford to delay enrollment until you are losing your group coverage or retiring. For most people, Part A is free, but Part B requires a lifelong premium. If you are collecting social security benefits, you may have already been enrolled into Medicare Parts A & B. As soon as you trigger Medicare enrollment, you will be required to pay Part B premiums every month.

If you are turning 65 but are still working, then you probably have coverage through your employer. If you are happy with this coverage, then you can keep it. Delaying your Part B for a few years while you work until retirement is often a good choice. Additionally, delaying Part B while you are still working is a good way to avoid paying unnecessary penalties while not paying premiums for care you do not need.

Delaying enrollment into Part A is less common for a reason.

Part A Medicare is considered hospital coverage. For most people, who have attained the work credits, this coverage is completely free. Therefore, enrolling into this part of Medicare costs nothing and provides coverage for expenses incurred during a hospital stay. For this reason, most people should enroll in Part A coverage as soon as they are eligible. There are also rare group coverage options that do not coordinate well with Medicare, that you should be aware of.

However, if you have not accrued the necessary work credits, then delaying enrollment while you work and earn more, is a good choice. Also, be aware that while you may enroll in Part A and delay Part B, there is no way to enroll in Part B and delay Part A. If you want to delay Part A, then you have to delay Part B as well.

Avoiding Part B Late Penalties

Because of the premium requirement, many people consider delaying Part B enrollment. If you are delaying your Part B enrollment because you are currently covered under a group plan, then you are exempt from Part B late enrollment penalties.

It’s important to note that usually, you will have to pay additional fees if you sign up for Medicare later than your Initial Enrollment Period. This is a 7 month period around your 65th birthday.

Special rules for Tricare and COBRA

If you are covered by COBRA, then you should usually choose to enroll in both parts of Medicare right away. COBRA doesn’t count as a normal group plan. You will incur penalties if you do not enroll in Medicare while enrolled in COBRA. Tricare also isn’t a group plan from an employer. Delaying enrollment in Part B while under Tricare may lead to gaps in coverage and late penalties.

How to delay Part B Medicare coverage

If you are receiving Social Security benefits and you are approaching your 65th birthday. Call Social Security, at least 4 months before your 65th birthday, and let them know you would like them to delay your coverage. If you are not receiving any Social Security benefits, then you are not enrolled in either Part A or Part B, and no action is required if you wish to delay.

Still working and covered under your employer’s group plan? Contact your Social Security office before your 65th birthday and let them know. Even if you wish to enroll in Part A, it is important to call and let them know you will be maintaining healthcare coverage until retirement.

What next?

Eventually, Medicare will be a part of your healthcare solution. Newnan Medicare can help you from initial enrollment to plan selection every year for as long as you need Medicare. Our services cost you nothing and we can provide agent support for most issues. Don’t go it alone. We are here to help.