There are several enrollment periods for Medicare Part B. The vast majority of people enroll on their 65th birthday, at the same time enrolling in Part A. Enrolling at 65 is known as the Initial Enrollment Period (IEP.)
For those still employed at age 65 and over and had group health insurance, there is a Special Enrollment Period (SEP) to enroll in Medicare Part B.
For individuals that did not enroll in Medicare Part B during their IEP or SEP there is the General Enrollment Period (GEP.)The GEP should be viewed as a last resort, as lifetime penalties are involved.
The Importance Of Medicare Part B.
Unless covered on a group plan at 65 and over, everyone should enroll in Part B. It covers all doctor visits, most outpatient services, and most injected medications.
General Enrollment Period (GEP)
The Medicare GEP is the first quarter of the year, with coverage beginning July 1st. Missing the March 31st enrollment deadline will result in coverage beginning July 1st of the following year.
Enrolling in Medicare Part B/General Enrollment Period
Download and complete form CMS 40B found on the Medicare.gov website. Submit the completed form to the local Social Security office. You must be enrolled in Part A to enroll in Part B. For those with benefits through the Railroad Retirement Board (RRB,) please send form to the RRB, not Social Security.
The Punitive Nature Of The GEP
The vast majority of those that enroll in Medicare Part B during the GEP will have a gap in coverage and pay Part B premium penalties for life. The moral of the story is to not put off enrolling in Medicare Part B when first available to you either during your IEP or SEP.
How do the Penalties Work?
In addition to the 2022 $170.10 monthly Medicare Part B premium for most individuals, the federal government will hit you with a 10% penalty for every year you were eligible but did not enroll. For most people that is age 66. It doesn’t matter if you had group coverage, an individual plan, or COBRA, if you miss your IEP or SEP once you retire the government will apply the 10% penalty. Say you work to age 71, retire, and forget to enroll in Part B during your Special Enrollment Period. When you do enroll the government will apply a 50% penalty (10% x 5 years.) Instead of $170 a month it is now $255 a month…. for life! Bottom line, never enroll in COBRA at 65 and always enroll in Part B when first available to you during the IEP or SEP.