Toni:
I turned 65 in June two years ago and did not enroll in Medicare because I do not have any health issues. A friend advised me to enroll in Medicare during Medicare’s Annual Enrollment Period. I received a letter stating that because I did not enroll in Medicare when I turned 65 that I have been denied Medicare.
The letter also stated that I need to enroll in Medicare online during Medicare’s General Enrollment Period which is Jan.1-March 31. I am confused about what I need to do to enroll in Medicare online and what website to use. Can you please explain what I need to do in simple terms and what kind of penalty I can expect? Thanks, Toni.
Don from Dallas
Hi Don:
The letter stated you will have to enroll during Medicare’s General Enrollment Period (GEP), from Jan.1-Mar. 31 each year. This enrollment period is for those who never enrolled in Medicare Parts A and B, but not for those who failed to enroll in a Medicare Part D prescription drug plan.
That is what Medicare’s Annual Enrollment Period (AEP), which recently ended Dec. 7, is for; and you will have to wait until 2025’s AEP, which begins on Oct.15 and runs through Dec.7, to enroll in Part D.
Beginning Jan.1, 2023, Medicare’s GEP rules changed, helping Americans who had not enrolled in Medicare when turning 65. Page 18 of the Medicare & You Handbook under “General Enrollment Period” explains that now when you enroll in January, February, or March, your Medicare Part B will begin the first day of the following month. If you wait past March 31 to enroll, your Medicare enrollment will be delayed until Jan.1 of the next year, and you’ll receive a higher Part B penalty. This penalty goes all the way back to the month you turned 65.
Don, if we were to have a Toni Says Medicare consultation, whether in person or online, I would advise you to enroll in Medicare Parts A and B during 2025’s Medicare’s GEP which begins Jan. 1, and do not delay enrolling in Medicare.
Yes, Don, you will receive the Part B penalty which is a 10% penalty for each 12-month period (year) that you failed to enroll. Your penalty will be 20% or 30% depending on the number of years you could have had Part B but failed to enroll. The penalty remains in effect for the life of the Medicare beneficiary’s Medicare coverage.
Enrolling in Medicare Parts A and B requires you to have an ssa.gov account. You can sign up for Medicare online at https://www.ssa.gov/medicare/sign-up. Don, when you enroll during Medicare’s GEP from Jan. 1 — Mar. 31, your Medicare will begin the first day of the month following enrollment. This information is what your letter from Social Security stated.
Currently, there are more than 7 million Americans on Medicare receiving a Medicare Part B penalty costing, on average, $5,000 in lifetime penalties because they did not enroll in Medicare at the right time.
Don, you will also be receiving a Part D penalty and should enroll in the next enrollment time for Medicare Part D, which is the 2025 Medicare AEP. Whichever prescription drug plan you pick will start Jan. 1 (2026) with a specific Part D penalty.
The penalty is 1% for each month you failed to enroll in Medicare Part D starting at age 65. This penalty, based upon the national Part D average premium, changes as the national Part D average premium changes.
Readers, when turning 65 and covered by an individual policy or no health insurance, please do not delay enrollment in Medicare, like Don did — because with Medicare, what you don’t know WILL hurt you.
Toni King is an author and columnist on Medicare and health insurance issues. She has spent nearly 30 years as a top sales leader in the field. For a Medicare checkup, call the Toni Says call center at (832) 519-8664 or email info@tonisays.com regarding your Medicare plans and options.