Medicare’s General Enrollment Period (GEP) is designed to punish those that did not enroll in Medicare Part B in a timely manner. Unfortunately, many individuals on COBRA that believe they are playing by the rules will find out come Medicare Part B enrollment time that they will face punitive premium charges for the rest of their life.
There has been a change to the Medicare GEP. It is still punitive, but not as bad as it was. As a reminder, Medicare has an Initial Enrollment Period for those around age 65, and a Special Enrollment Period for those still working which is up to eight months after retiring or losing group coverage.
The GEP is for those individuals that missed either enrollment periods. The GEP takes place the first three months of each year. The Medicare Part B effective date would then be the following July. On top of the gap in coverage the GEP applicant will face a 10% premium penalty for each year they could have been enrolled in Part B but were not. The 10% premium penalty is for life.
The Change For 2023:
Instead of Part B coverage beginning in July it will now start the first of the following month after GEP enrollment. Unfortunately, the 10% penalty remains for life. There is some hope though. A GEP applicant in 2023 may now possibly avoid the 10% lifetime penalty if they were not given effective notice from their past employer regarding Medicare and COBRA and how they interact.
Once and individual is enrolled in Medicare Parts A and B they may purchase a Medicare supplement plan.