There are consequences of missing or delaying enrollment for Medicare. Currently, Medicare has three enrollment periods, The Initial Enrollment Period (IEP) includes the three months before you turn 65, the month of your 65th birthday, and the three months after you turn 65. Coverage begins one to three months later, depending on when you enroll. But, if you miss any of those enrollment opportunities, you must wait for a General Enrollment Period (GEP) that runs from January 1st to March 31st each year. Medicare coverage under Part B and in some cases Part A does not begin until July 1st.
Along with these coverage gaps, failure to enroll at age 65 can impose one with stiff late-enrollment surcharges. These surcharges are equal to 10% of the standard Part B premium for each 12 months of delay, this is a penalty that continues for the rest of one’s life. Medicare’s prescription drug program (Part D) comes with a much less late-enrollment penalty, equal to 1% of the national base beneficiary premium for each month of delay.
Financial planning is much more in depth than a bunch of investments. Issues such as Medicare enrollment are a big part of what we at Virtus Wealth Management help you with. Let us partner with you to help secure your financial future. If you have questions please feel free to call one of our advisors at 817-717-3812.