Medical Plan

Medical Plan Information You Need to Know!

The initial eligibility period to sign up for Medicare starts three months before the month you turn 65. Then, it ends three months after the month you turn 65. Furthermore, there are penalties for failing to sign up during this seven-month period.

PART A

If you must pay a premium for Part A and you don't get Part A when you're first eligible for Medicare, your monthly premium may increase 10% for each full 12-month period you could have had Part A, but didn't sign up. Moreover, you'll have to pay the higher premium for twice the number of years you didn't sign up. However, if you currently have group health coverage through a company with 20 or more employees, you may be able to delay getting Part A and not pay a penalty if you enroll later. (Note you must pay a Part A premium if you have had less than 40 quarters of work contributions to Medicare taxes.)

PART B

If you don't get Part B when you're first eligible, your monthly premium may increase 10% for each full 12-month period you could have had Part B, but didn't sign up. Most importantly, you'll have to pay this penalty each time you pay your premiums, for as long as you have Part B. However, if you currently have group health coverage through a company with 20 or more employees, you may be able to delay getting Part B and not pay a penalty if you enroll later.

PART D

If you don't get Part D when you're first eligible and you don't have other creditable prescription drug coverage (coverage that meets minimum standards set by the Center for Medicare and Medicaid Services), your monthly premium may increase by 1% of the current "national base beneficiary premium" times the number of months you didn't have Part D or creditable coverage. Most importantly, you'll have to pay this penalty each time you pay your premiums, for as long as you have Part D.