4 Reasons Why You Should Delay Medicare Enrollment

When you’re first eligible for Medicare, there’s a 7-month Initial Enrollment Period (IEP).  Your IEP spans the three months before your birthday month, throughout your birthday month, and the three months after your birthday month.  But what if you don’t plan to enroll in Medicare at age 65 and want to stay on a group health plan? Well, you can do this…and WITHOUT penalty!

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Here are 4 reasons why you should consider delaying Medicare enrollment:

— You have group health coverage from an employer that has 20+ employees.  In this case, the group health plan continues to be primary coverage, so you don’t need to enroll in Medicare Part B (medical/outpatient).  You can enroll in Part A (hospital) without issue, as long as you’re not contributing to a Health Savings Account (HSA).

— You have group health coverage from your employer that has 20+ employees…AND…your younger spouse (not yet eligible for Medicare) is also covered on the plan as a dependent.

— Your income is high, which would cause your Medicare Part B (and Part D IRMAA) premiums to increase.  Depending on your group plan premiums, this could make the Medicare route more expensive. The standard Part B premium in 2019 is $135.50/mo…but it can get as high as $460.60/mo at the top income tiers.

— Lastly, you may determine your existing group health coverage has a very strong design and/or it would simply cost more to go on Medicare.

You’re probably thinking…”Isn’t there a penalty to delay Medicare enrollment?”  In a vacuum, this is true…but if your employer has 20+ employees and you’re covered in the group health plan (based on your employment or a spouse’s), you can delay enrollment in Part A and/or Part B without penalty.  And don’t let anyone tell you otherwise! In this case, you will use your Special Enrollment Period option to enroll.

Contact Us if you need help deciding what to do.

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Medicare Enrollment Periods

Neither Medicare Mindset LLC nor its agents are connected with the Federal Medicare program.