Unless you have insurance based on you or your spouse’s current job or are eligible for a Medicare Savings Program (MSP), you will have to pay a 10% Medicare Part B premium penalty for each 12 months you are not enrolled in Medicare Part B.
In most cases, you will pay that penalty as long as you have Medicare. However, if you are enrolled in Medicare under age 65 due to a disability, you will no longer have to pay the penalty once you turn 65.
How can I calculate my penalty?
Let’s say you turned 65 in 2015, but did not enroll in Medicare Part B until 2021 (and you did not have employer sponsored coverage). Your Medicare Part B monthly premium would be 50% higher for as long as you have Medicare. Since the base premium in 2021 is 148.50, your monthly premium would be $222.75 ($148.50 x .7 + $148.50)
Remember, even though your Medicare Part B premium is based on your income, your penalty is calculated based on the base Medicare Part B premium and then added to your premium amount.
Before enrolling in Medicare, make sure to review your coverage and options with a licensed insurance agent. At Medicare Pathways, we can help you make sure that all of your needs are met & that you avoid any penalties. Call Medicare Pathways today for a no-cost review of your coverage!